3-D printing stocks are crashing

Shares of several companies fell after 3-D Systems said earnings would be hurt by a spending increase.

By MSN Money Partner Feb 5, 2014 2:14PM
Caption: A 3D printer MakerBot Replicator 2 produces a sculpture
Credit: © Fabrizio Bensch/ReutersRob Wile, Business Insider

Shares in 3-D Systems (DDD) were off nearly 27 percent Wednesday morning after the company announced it was ramping up spending, which would impact earnings. Shares had gained slightly by midday to a drop of 15 percent.

The company now sees adjusted 2014 earnings per share coming in at $0.73 to $0.85. Consensus expectations, according to Bloomberg, was $1.29. 


The company develops and manufactures 3-D printers, which can make components for everything from body parts to guns (as well as desktop widgets).


Expected 2013 adjusted EPS also missed expectations. The company now sees a range $0.83 to $0.97 -- a downward revision from $0.93 to $1.03, and below the consensus estimate of $0.97.


Revenue came in in-line with expectations.


Last month, Credit Suisse downgraded 3-D on concerns about losing market share to rival Stratasys (SSYS).


Dow Jones reports DDD has announced "substantial" R&D spending increases to try to close that gap. "As we previously stated, we are willing to tolerate earnings reduction and even slight gross-profit-margin compression during this period to substantially accelerate our growth rate and market share," says CEO Avi Reichental.


All 3-D printing stocks are suffering Wednesday, though, with Stratasys down more than 3 percent and ExOne (XONE) down nearly 8 percent. Both gave mixed-to-weak outlooks for 2014 last month.


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