3D Systems Slashes Full-Year Outlook After 3Q Lags

Earnings Reuters

3D printer maker 3D Systems Corp (DDD) estimated quarterly revenue well below the average analyst estimate, citing manufacturing constraints for its direct metal printers, sending its shares down 11 percent in premarket trading.

Continue Reading Below

The company also cut its full-year revenue forecast to $650 million-$690 million, below analysts' expectation of $707.5 million. The company had previously forecast $700 million-$740 million.

3D Systems said it expected to report adjusted earnings of 16 cents-19 cents per share for the third quarter ended September.

The company estimated revenue of $164 million to $169 million.

Analysts on average were expecting earnings of 21 cents per share on revenue of $186 million, according to Thomson Reuters I/B/E/S.

The company said sales of its design, manufacturing and healthcare products could not compensate for the revenue loss from manufacturing constraints for its direct metal printers, as well as a delay in availability of its consumer products.

Continue Reading Below

"We are disappointed that we failed to fully capitalize on the robust demand for our direct metal and consumer products during the quarter," Chief Executive Avi Reichental said in a statement.

3D Systems said in April it expected to get most of the revenue and profit it forecast for 2014 in the second half.

The company's shares were down 10 percent at $38.99 in premarket trading on Wednesday.

(Reporting by Supantha Mukherjee and Anya George Tharakan in Bangalore; Editing by Sriraj Kalluvila and Don Sebastian)