Oppenheimer: 3D Systems 'Didn't Stink; That Passes for Distinction Nowadays'

3D Systems Corporation

reported earnings on Thursday afternoon. Despite a Q4 miss ($0.21 vs. $0.25 EPS) on lower sales ($187.4 million vs. $202.3 million), the stock is trading higher as the guidance was "better than feared," analysts at Morgan Stanley assured. In a report published Friday, Oppenheimer weighed in on the results, noting that "4Q14 Report/2015 Guide Didn't Stink; That Passes for Distinction Nowadays." The analysts confess that they "did not get the strong launch out of 3DS' 4Q14 EPS" they hoped for, but they did see some progress –just enough. "A new issue hit growth [the channel; North American resellers], but other issues fell away (metals, consumer growth) and the firm gave in-line guidance on anticipated operating leverage – the report explained. It wasn't great, and the unexpectedly low 4Q14 base makes ‘show me' the right sentiment around guidance. Still, tone and outlook was okay and easy comps support accelerating growth through 2015. Given sentiment and valuation around the space and 3DS specifically, that is likely sufficient to cement a bottom, at worst." The report also highlights an under-the-surface story that should be noted: productivity. According to the report, "3DS is concluding an investment phase and plans to slow M&A in favor of more coherently organizing the myriad assets it has accumulated. Slower spend, rising volumes, and a renewed (and restaffed) productivity push is a recipe for margin renewal going forward." Despite having cut estimates, 3D Systems remains one of Oppenheimer's favorites for 2015. The firm reiterated an Outperform rating and a $52 price target on the stock.