Skip to main content

Market Overview

BofA: 3D Systems Could Remain Under Margin Pressure

BofA: 3D Systems Could Remain Under Margin Pressure

3D Systems Corporation (NYSE: DDD) delivered a fourth-quarter EPS beat Thursday, but on the back of lower taxes, according to Bank of America Merrill Lynch.

Gross margins in both materials and services contracted significantly in the quarter.

The Analyst

Analyst Wamsi Mohan maintains an Underperform rating on 3D Systems with an unchanged $10 price target. 

The Thesis

3D Systems reported fourth-quarter revenue of $181 million, in-line with Street expectations. The company noted robust demand across its product suite and across geographies.

Adjusted EPS came in at 10 cents, beating the consensus estimate of 6 cents This was driven by lower taxes, while the company’s margins contracted, Mohan said in a Friday note. 

Higher printer revenue was largely offset by a decline in revenue in material and services, the analyst said. Print material gross margins contracted by 170bps sequentially, while services gross margins were down 370bps.

Positives for the quarter included a good customer response to the NextDent 5100 and new DMP systems, Mohan said. 

The analyst expressed concern regarding the company’s margin trajectory in both the near- and long-term.

BofA lowered its revenue and EPS estimates for F19 from $712 million to $710 million and from 25 cents to 19 cents, respectively.

Price Action

Shares of 3D Systems were falling 13.88 percent to $12.16 at the time of publication Friday. 

Related Links:

Jim Cramer Gives His Opinion On AbbVie, Idexx Labs And More

Q4 Earnings Preview For 3D Systems

Latest Ratings for DDD

Mar 2021Loop CapitalUpgradesSellHold
Jan 2021BerenbergDowngradesBuyHold
Jan 2021StifelInitiates Coverage OnHold

View More Analyst Ratings for DDD
View the Latest Analyst Ratings


Related Articles (DDD)

View Comments and Join the Discussion!

Posted-In: 3-D Printing Bank of America Merrill LynchAnalyst Color Earnings News Price Target Reiteration Analyst Ratings Best of Benzinga

Latest Ratings

ACVAJP MorganInitiates Coverage On30.0
DSEYJefferiesInitiates Coverage On19.0
LGOMorgan StanleyUpgrades36.0
THTXCanaccord GenuityMaintains8.0
SRAXDawson JamesInitiates Coverage On10.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at