3D Systems Corp (NYSE: DDD) reported better-than-anticipated fiscal 2021 second-quarter earnings and revenues. Furthermore, the three-dimensional printing solutions provider reaffirmed its earlier guidance for fiscal 2021.
Following the upbeat quarterly results, the stock rallied 21.48% or $6.09 to close at $34.44. The company’s share price has increased by over 100% in the year-to-date. Over the last 12-months, the stock price has more than quadrupled.
The Rock Hill, South Carolina-based 3D printer manufacturer, reported second-quarter 2021 revenues of $162.557 million, an increase of 44% from $112.78 million in the similar quarter last year. The solid performance of the Healthcare segment and robust demand from industrial clients enabled the company to post stellar performance in the second quarter.
For the quarter ended June 30th, 2021, the company posted a net loss that narrowed to $9.632 million, or $0.08 per share, from a net loss of $37.951 million, or $0.33 a share, in the quarter ended June 30th, 2020.
Excluding amortization, stock-based compensation, Legal acquisition and divestiture expenses, among others, in the recent quarter, the company swung to a net profit of $14.20 million, or $0.12 per share, from a net loss of $15.10 million, or $0.13 a share, in the second quarter of 2020. The swing to profit was aided by a sharp rise in revenues and cost savings attained through restructuring activities.
Analysts surveyed by Zacks Investment Research had forecast earnings of $0.05 per share on revenues of $141.90 million for the quarter.
Commenting on the results, President and Chief Executive Officer, Dr. Jeffrey Graves said, “Our second-quarter performance reflected continued positive momentum, with results that greatly surpassed those of a year ago from both a revenue and profitability perspective.”
Segment-wise,
- Product revenues increased 74.60% y-o-y to $108.638 million.
- Services revenues were $53.919 million, up 6.60% from last year.
The world leader in additive manufacturing solutions posted an increase in GAAP gross margin to 42.4%, from 31.2% in the prior-year period. Adjusted gross margin inched higher to 42.40%, from 41% last year.
3D Systems ended Q2 2021 with cash and cash equivalents of $131.80 million, slightly down from the $133 million reported in the earlier quarter. At the end of June 30th, 2021, the company was free of debt. The cash from operations was $13.50 million.
Furthermore, the company also had an unutilized revolving credit facility worth $100 million. 3D Systems anticipate having cash of more than $500 million following the expected divestment of its non-core assets in the current quarter. Specifically, the company is divesting its on-demand parts division and medical simulation unit Simbionix.
3D Systems also reaffirmed its earlier FY21 profit guidance range of between 40% and 44% but did not reveal any additional details.
The swing to profits in the latest quarter is expected to keep the stock bullish in the short term.
The historical price chart indicates that the stock has broken above the ascending triangle. The stock is also trading above its 50-day moving average, while the Chaikin money flow indicator has a positive reading. We are anticipating the stock to remain in an uptrend in the short term.
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