Shares of 3D Systems Corp. (DDD) moved up Thursday after the company reported higher earnings and revenues for the fourth quarter, supported by further strong growth in the demand for printers. Earnings also exceeded Wall Street’s prediction.
Adjusted profit rose to $0.10 per share from $0.05 per share in the fourth quarter of 2017. The improvement was spurred by a 2% growth in revenues to $180.7 million. Product revenue jumped 10.5% to $133.1 million, more than offsetting a 9% decline in services revenue. Driving the top-line growth, printer unit sales more than doubled during the quarter.
On a reported basis, net loss narrowed sharply to $4.14 million or $0.04 per share from $10.13 million or $0.08 per share a year earlier, helped mainly by a significant tax benefit. Contributing to the improvement in bottom-line performance, operating expenses dropped 2% to $89.6 million.
Contributing to the improvement in bottom-line performance, operating expenses dropped 2% to $89.6 million
“Our improved operational foundation, execution and unmatched portfolio focused on production solutions, position the company very well to drive continued and increasingly profitable growth in 2019 and beyond,” said CEO Vyomesh Joshi.
During the quarter, the management made significant investments in new product development and IT infrastructure. The cost optimization measures initiated in the early part of 2018 started yielding results in the second half.
There are multiple product launches in the cards this year and going forward the focus will be on investments in materials innovations and software growth opportunities. Also, the cost-cutting program will continue in the coming months, with the goal of better cash generation.
Shares of 3D Systems gained 35% since the beginning of 2019 and 23% in the past twelve months. The stock closed Thursday’s regular session lower but gained more than 3% in the after-hours.