3D Systems warns on profit; sector stocks slide

Reuters News
Posted: Feb 05, 2014 9:36 AM

(Reuters) - 3D Systems Corp, the largest listed 3D printer maker, cut its fourth-quarter profit estimate, hurt by softer demand for consumer printers and printed parts.

Shares of 3D Systems fell as much as 28 percent after the company also forecast weaker-than-expected results for the current fiscal year.

The stock of other 3D printer makers fell after the warning. Stratasys Ltd fell 12 percent, Exone Co shares dropped 13 percent and Voxeljet fell about 10 percent.

3D Systems said it now expected adjusted profit of 83 to 87 cents per share in the fourth quarter of fiscal 2013.

This was as sharp cut from the company's previous forecast of 93 cents to $1.03 per share.

3D Systems said it expected 2014 adjusted earnings of 73 to 85 cents per share on revenue of $680 million to $720 million.

This was well below the analysts' average forecast of annual earnings of $1.27 per share on revenue of $671.3 million, according to Thomson Reuters I/B/E/S.

The cost of 3D printing technology has fallen in recent years, leading to its use in manufacturing and for prototyping, as well as the consumer market.

3D systems counts General Electric Co, Hasbro Inc, and Texas Instruments Inc among its customers.

Shares of 3D Systems were trading down 25 percent at $56.88 in morning trade on the New York Stock Exchange on Wednesday.

(This story was corrected in first paragraph to "softer" and not "falling" demand)

(Reporting By Sampad Patnaik in Bangalore; Editing by Savio D'Souza)