Why 3D Systems Stock Sank by Almost 13% on Wednesday

3D Systems (NYSE: DDD) is not heading into the Thanksgiving holiday on a high note. The 3D printing specialist reported its latest set of quarterly results; as these missed on both the top and bottom lines, the market reacted negatively. Investors pushed the company's share price down by nearly 13% on the day, a far steeper fall than the S&P 500 index's 0.4%.

A tough third quarter

After market close on Tuesday, 3D Systems published its third-quarter figures. These showed that the company's revenue for the period was slightly under $113 million, representing a 9% decline year over year. More concerning was a significant deepening of net loss, which came in at almost $179 million against the year-ago shortfall of less than $12 million. On a non-GAAP (adjusted) and per-share basis, the latest deficit was $0.12.

On average, analysts tracking 3D Systems stock were modeling nearly $116 million on the top line and $0.10 per share for adjusted net income.

In the earnings release, management attributed the declines to "macro weakness" in printer sales. This was offset to some degree by a 10% rise in the sales of consumables.

The (onetime) trend isn't your friend

3D Systems also updated its full-year guidance. It's now expecting revenue of $440 million to $450 million, with adjusted gross profit margin ranging between 38% and 40%. Earnings before interest, taxes, depreciation, and amortization should rise on a sequential basis; no further detail was provided. The company did not proffer any bottom-line forecasts.

We're several years past the 3D printing investment trend, which didn't last long as the market moved on to more promising technology (like artificial intelligence, most notably). The performance of the broader 3D printing industry has been sluggish, and this company's latest results won't do much to restore confidence in it.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends 3d Systems. The Motley Fool has a disclosure policy.