3D Systems Lowers Outlook After Q2 Miss - What's Going On?

3D Systems Corporation DDD reported a second-quarter revenue decline of 8.5% year-over-year to $128.2 million, predominantly driven by expected weakness in the dental orthodontics markets, missing the consensus of $134 million. Adjusted revenue increased 2% Y/Y.

The adjusted gross margin expanded by 90 bps to 38.9%.

Adjusted EPS was $(0.07), missing the consensus loss of $(0.05).

Adjusted EBITDA loss was $(6.9) million versus $(2.6) million a year ago, driven primarily by lower total sales volume and inflationary impacts.

3D Systems had cash and short-term investments of $491.6 million.

Commenting on second-quarter results, Dr. Jeffrey Graves, President and CEO of 3D Systems, stated, "Looking at the state of the additive manufacturing market today, it is increasingly clear to us that the industry is at an exciting inflection point, with 3D printing now moving into factory production environments world-wide."

FY23 Outlook: 3D Systems expects revenue of $525 million - $545 million (prior expectation of $545 million and $575 million) vs. consensus $544.37 million and reiterated adjusted gross margins of 40% to 42%.

Price Action: DDD shares are trading lower by 7.73% at $7.46 on the last check Wednesday.