Shares down nearly 18% after disappointing 4Q results and future sales outlook
- Shares in 3D Systems down nearly 18% after lower-than-expected revenue and wider loss in 4Q
- Company blames decline on softness in dental orthodontics and delayed capital expenditures
- Fourth-quarter loss widened to $300.4 million
- CEO expects continued pressure on sales in 2024
- Guides for flat top-line revenue of $475 million to $505 million for 2024
Shares in 3D Systems were down sharply in premarket trading Wednesday after the company reported lower-than-expected revenue and a wider loss in the fourth quarter and said it expects continued pressure on sales in 2024. The Rock Hill, South Carolina-based 3D printer company had a 14% decline in revenue to $114.8 million, missing analyst expectations of only a slight decline in the period with a consensus forecast of $126.6 million. The decline is largely attributed to softness in dental orthodontics and delayed capital expenditures. The fourth-quarter loss widened to $300.4 million, compared to a loss of $25.6 million in the previous year. CEO Jeffrey Graves stated that the decline in revenue is more a reflection of market timing rather than a permanent trend. However, the company expects continued pressure on sales in 2024, with flat top-line revenue projected between $475 million and $505 million for the year.
Factuality Level: 8
Factuality Justification: The article provides specific details about 3D Systems’ financial performance in the fourth quarter, including revenue, losses, and analyst expectations. It also includes quotes from the company’s Chief Executive, Jeffrey Graves, providing insights into the reasons behind the lower-than-expected results and the company’s future outlook. The information presented is factual and based on reported financial figures and statements from the company.
Noise Level: 3
Noise Justification: The article provides relevant information about 3D Systems’ financial performance, including revenue, losses, and future expectations. It includes details on the reasons behind the decline in revenue and the company’s CEO’s comments on the situation. The article stays on topic and supports its claims with data and quotes. However, it lacks in-depth analysis of long-term trends or solutions to address the challenges faced by the company.
Financial Relevance: Yes
Financial Markets Impacted: Shares of 3D Systems
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to the financial performance of 3D Systems, a company in the 3D printing industry. It reports lower-than-expected revenue and a wider loss in the fourth quarter, as well as expectations of continued pressure on sales in 2024. However, there is no mention of an extreme event or its impact.
Public Companies: 3D Systems (DDD)
Key People: Jeffrey Graves (Chief Executive)
Reported publicly:
www.marketwatch.com 
