Sunday, May 5, 2013

Jumping Into 3D Systems' Earnings: Software and Research

In this video, Motley Fool industrials analyst Blake Bos reviews the latest earnings report from 3D Systems (NYSE: DDD  ) . Overall, it is a good report: Revenues and earnings slightly exceeded Wall Street expectations. The company maintained its guidance for 2013, but did point out that its tax rates will increase. 3D Systems was a little light on R&D spending, only 7%, so this would be something to watch in the future because growth companies typically spend more. Management noted that new products, including its new Cube X printer, have been selling well, but hard numbers will have to wait until the next quarter. The company plans on focusing on the medical device market and developing synergies with its recently acquired software company. The software acquisition looks particularly promising given its high profit margins.

3D Systems is at the leading edge of a disruptive technological revolution, with the broadest portfolio of 3-D printers in the industry. However, despite years of earnings growth, 3D Systems' share price has risen even faster, and today the company sports a dizzying valuation. To help investors decide whether the future of additive manufacturing is bright enough to justify the lofty price tag on the company's shares, The Motley Fool has compiled a premium research report on whether 3D Systems is a buy right now. In our report, we take a close look at 3D Systems' opportunities, risks, and critical factors for growth. You'll also find reasons to buy or sell the stock today. To start reading, simply click here now for instant access.

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