NYSE$DDD

3D Systems Corp. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported a decrease in revenue compared to the same quarter last year, but showed sequential growth from the previous quarter. The company's healthcare sector experienced growth, while industrial sales declined. Restructuring efforts are expected to yield significant cost savings by year-end.

3D Systems reported a revenue of $135.1 million for Q3 2020, a decrease of 13% compared to Q3 2019, but a 20.6% increase compared to Q2 2020. The company's GAAP loss per share was $0.61, which included a $48.3 million pre-tax non-cash goodwill impairment charge. Non-GAAP loss per share was $0.03. The healthcare sector saw a 6.1% increase in revenue, while industrial sales decreased by 23.8%.

  • GAAP revenue was $135.1 million, a 13% decrease year-over-year but a 20.6% increase sequentially.
  • GAAP loss per share was $0.61, including a $48.3 million goodwill impairment charge.
  • Non-GAAP loss per share was $0.03.
  • Healthcare revenue increased by 6.1%, while industrial sales decreased by 23.8%.

Headline financials

Total Revenue

$135M

Previous: $155M-13.0%
EPS (adj)

-$0.03

Previous: -$0.04+25.0%
Capital Expenditures

-$11M

Previous: -$18.3M+39.7%
Free Cash Flow

-$27.9M

Previous: -$35.1M+20.7%
Net Income

-$16.8M

Previous: -$16.8M+0.0%
Operating Income

-$67.6M

Previous: -$11.9M-466.5%
Gross Profit

$58.6M

Previous: $67.3M-12.9%
Cash & Equivalents

$75.3M

Previous: $128M-41.0%
Total Assets

$707M

Previous: $823M-14.0%
Stock-Based Comp

$3.02M

No prior period

Revenue & EPS history

3D Systems · Revenue · Quarterly

$135M

Q3 2020-13%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

3D Systems · $124M total across 2 segments · Q3 2023

  • Industrial Solutions
    $71.4M
  • Healthcare Solutions
    $52.4M

Forward guidance

3D Systems anticipates trends from Q3 continuing through Q4. They do not expect to issue shares of common stock as part of its ATM Program during the fourth quarter of 2020.

Tailwinds

  • Strong sequential quarterly growth in both Healthcare and Industrial businesses of approximately 20%.
  • Restructuring efforts on track to deliver targeted $60 million in savings on a run-rate basis by year end.
  • Expected completion of the sale of Cimatron and GibbsCAM businesses.
  • Receipt of proceeds from the sale of Cimatron and GibbsCAM businesses.
  • Company does not expect to issue shares of its common stock as part of its ATM Program during the fourth quarter of 2020.

Headwinds

  • Challenges of the pandemic persist.
  • Volatility continues in the market.
  • Decreases were in all products, materials and services across all geographies in Industrial sales.
  • Cash on hand has decreased $58.4 million since December 31, 2019.
  • Company plans to evaluate the continued need for the ATM Program and may ultimately elect to terminate such program.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-2.5%

Avg return

Earnings day

-3.7%

Avg return

5 days after

-0.9%

Avg return

30 days after

38%

25 / 65 earnings

Positive

+34.5%

Q2 2018

Best reaction

-27.8%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.2%+21.9%+16.6%
Q4 2025-1.9%+23.5%-2.0%
Q3 2025-0.8%-13.4%-17.6%
Q1 2025-27.8%-32.5%-31.8%
Q4 2024-21.0%-23.9%-28.7%
Q3 2024-14.0%-13.4%+1.2%
Q2 2024-7.0%-17.0%+25.7%
Q1 2024+0.0%+1.5%+1.2%
Q4 2023-22.2%-18.2%-14.1%
Q3 2023-1.9%-0.7%+40.3%
Q2 2023-12.0%-11.3%-34.8%
Q1 2023-9.4%-10.1%+8.8%
Q4 2022+10.2%+12.9%+1.0%
Q3 2022+4.6%+28.3%+21.8%
Q2 2022-10.7%-1.7%-24.0%
Q1 2022-7.9%-6.0%-0.5%
Q4 2021-1.0%-16.2%-2.2%
Q3 2021-10.3%-20.7%-27.2%
Q2 2021+24.5%+9.0%+12.3%
Q1 2021+25.1%+16.2%+55.4%
Q4 2020-13.0%-36.2%-30.3%
Q3 2020+5.6%+23.7%+77.0%
Q2 2020-8.3%-9.4%-20.9%
Q1 2020-10.4%-11.2%-2.6%
Q4 2019-8.1%-10.1%-30.0%
Q3 2019+8.3%+11.1%-3.1%
Q2 2019-14.3%-13.6%-8.9%
Q1 2019-22.2%-21.2%-23.3%
Q4 2018-14.7%-18.0%-24.4%
Q3 2018-22.7%-17.3%-20.2%
Q2 2018+34.5%+48.9%+39.9%
Q1 2018-10.5%-3.4%+19.7%
Q4 2017+7.0%+0.3%-0.7%
Q3 2017-20.1%-23.9%-25.3%
Q2 2017-21.6%-24.1%-24.8%
Q1 2017-1.5%+16.4%+26.6%
Q4 2016-10.9%-14.2%-12.5%
Q3 2016-4.7%+3.7%+3.6%
Q2 2016+17.1%+26.1%+22.5%
Q1 2016-9.3%
Q4 2015+9.4%
Q3 2015+0.1%
Q2 2015+14.7%
Q1 2015-8.6%
Q4 2014+1.5%
Q3 2014+0.4%
Q2 2014-14.5%
Q1 2014-3.9%
Q4 2013+0.3%
Q3 2013+6.9%
Q2 2013-6.5%
Q1 2013+5.3%
Q4 2012-7.5%
Q3 2012+18.8%
Q2 2012+9.6%
Q1 2011+3.6%
Q1 2012+3.6%
Q4 2009+15.4%
Q4 2011+15.4%
Q1 2010+15.4%
Q3 2011-16.3%
Q3 2010-16.3%
Q2 2011-2.7%
Q2 2010-2.7%
Q4 2010-2.7%

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