3D Systems cuts 2013 profit forecast, shares fall

Reuters News
Posted: Oct 29, 2013 9:17 AM
3D Systems cuts 2013 profit forecast, shares fall

(Reuters) - 3D Systems Corp cut its earnings forecast for 2013 as it spends more on research and expanding its retail presence, sending its shares down 7 percent in premarket trading.

The largest listed 3D printer company said it expects full-year adjusted earnings of 93 cents to $1.03 per share, down from its previous forecast of $1.05 to $1.20.

The company, however, raised its revenue forecast for the year to $500 million-$530 million from its previous forecast of $485 million-$510 million, and reported better-than-expected third-quarter results.

3D Systems said it was also investing in developing new products and growing capacity at metal 3D printer maker Phenix Systems, which it acquired in July.

Net income attributable to the company rose to $17.7 million, or 17 cents per share, in the three months to September 30, from $13.5 million, or 16 cents per share, a year earlier.

Excluding items, the company earned 26 cents per share.

Revenue rose 50 percent to $135.7 million.

Analysts on average had expected earnings of 26 cents per share on revenue of $132 million, according to Thomson Reuters I/B/E/S.

The company signed a retail agreement with office supply retailer Staples Inc in May to sell its Cube consumer printer.

However, sales of the printer have been in hundreds rather than the thousands anticipated, William Blair analyst Brian Drab wrote in a pre-earnings note.

"The retail partnership with Staples has definitely had an impact on 3D Systems' shares over the last several months, but our checks indicate essentially zero impact on the company's financial performance," he said.

3D Systems' shares have risen 44 percent since the announcement from Staples. The company does not break out sales figures for Cube, which it launched in January last year.

Shares of the company, whose rivals include Stratasys Ltd and Exone Co, were trading at $53.12 after closing at $56.98 on Monday on the New York Stock Exchange.

(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Saumyadeb Chakrabarty)