The biggest and the most popular 3D printing company 3D Systems DDD is down about 9% even after reporting decent earnings and delivering an upbeat outlook this morning. Earnings for Q1 came at $0.15, meeting the consensus view of $0.15.
The top line showed substantial growth. Q1 revenues came at $147.8 million vs. consensus view of $145.5 million. Product revenues grew 53% to $60.8 million, service revenues grew 38% to $46.6 million, and supplies revenues grew 41% to $40.4 million.
For all of 2014 the company projects revenues of $680 to $720 million vs. consensus of $701, and guided for earnings of $0.73 to $0.81 vs. consensus of $0.81.
On the conference call, the company projected growth accelerating and gross margins improving in subsequent quarters.
Wall Street still has not given up its enthusiasm. Going into the earnings, Citi saw a favorable setup for 3D printing stocks and maintained a buy on 3D Systems. Brean Capital said that risk reward was attractive and maintained a target of $84. Canaccord said that fundamentals remained intact and maintained a $100 price target. Today as the stock is plunging, Pacific Crest has come out in defense of the stock…Read more at Forbes