In This Article:
3D Systems DDD reported a non-GAAP loss of 19 cents per share in the fourth quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 11 cents. The company registered earnings of 13 cents per share in the year-ago quarter.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The results negatively impacted investor sentiment, leading to a 2.21% drop in the company's share price in the pre-market trading on March 27.
DDD reported revenues of $111 million for the fourth quarter of 2024, down 3.3% year over year. The top line also missed the Zacks Consensus Estimate by 3.86%.
3D Systems Corporation Price, Consensus and EPS Surprise
3D Systems Corporation price-consensus-eps-surprise-chart | 3D Systems Corporation Quote
The performance was impacted by an $8.7 million reduction due to a change in accounting estimates related to the refinement of milestone recognition criteria in the Regenerative Medicine program.
Product revenues declined 5.8% year over year to $70.4 million in the fourth quarter, contributing 63.4% to total revenues.
Services revenues, which accounted for 36.6% of total revenues, declined 1.3% year over year to $40.6 million.
DDD’s Quarterly Details
The company operates through two key segments — Healthcare Solutions and Industrial Solutions — tailored to the diverse industries it serves. Healthcare Solutions focuses on dental, medical devices, personalized health services and regenerative medicine, whereas Industrial Solutions caters to aerospace, defense, transportation and general manufacturing.
In the fourth quarter, Healthcare Solutions' revenues decreased 21% year over year to $40.4 million.
Industrial Solutions revenues increased 11% year over year to $70.7 million. The rise was driven by a healthy uptick in the sale of new industrial printer systems and global services and the launch of products across the industrial markets.
3D Systems' Industrial business continues to showcase its strategic advancements, with its collaboration with Daimler Truck highlighting the significant cost-saving potential of integrating digital rights management with on-demand localized printing. By leveraging Oqton’s workflow management platform for critical spare parts, the company is tapping into a rapidly growing market, which is projected to reach $8 billion for trucks by 2027.
DDD’s non-GAAP gross profit fell 24.2% year over year to $34.7 million. The non-GAAP gross profit margin declined 860 basis points to 31.3% due to a change in accounting estimates related to the refinement of milestone recognition criteria within the Regenerative Medicine program and unfavorable manufacturing variances.
Adjusted EBITDA fell $5.1 million year over year to a loss of $19.1 million in the fourth quarter. The downturn was led by lower revenues and reduced margins due to a change in accounting estimates related to the refinement of milestone recognition criteria in the Regenerative Medicine program.