What happened
3D printer manufacturer actions 3D Systems (NYSE: DDD) jumped 84.5% in the 11:30 EST negotiations – and yes, you read that right.
Earlier this morning, 3D announced the successful sale of its “non-core software businesses for a cash revenue of approximately $ 64 million.” He also added a preview of his fourth quarter 2020 financial results, predicting that revenue will far exceed analysts’ expectations and will be between $ 170 million and $ 176 million in the quarter.
Image source: Getty Images.
And
In the last report, of course, analysts had been telling investors to expect less than $140 millions in sales for the fourth quarter of 3D, so what we’re seeing here is an almost certain victory of historical proportions – but even that was not the end of the good news that 3D had to report.
With its $ 64 million cash earnings in hand, 3D says it was able to pay off all of its “senior guaranteed term” debt and no longer needs to continue selling shares and diluting shareholders, through its previously announced “on the market “stock sale program. (By the way – at this point, a hat tip is appropriate for investment bank analysts Craig-Hallum, who predicted all from above two months ago)
What now
Essentially debt-free now, and free to focus on its two main 3D printer manufacturing businesses (industrial and healthcare), the company also noted that, in addition to better-than-expected sales, it is likely to report something around $ 11 million to $ 19 million in pro forma profit in the fourth quarter. The results of generally accepted accounting principles (GAAP) can still be as bad as a loss of $ 8.6 million, but there is at least the possibility that 3D will generate a GAAP profit of up to $ 0.5 million this quarter.
After a second quarter of revenue growth of more than 20% and with GAAP profitability finally within reach, 3D Systems CEO Jeffrey Graves concluded his note this morning by saying, “With the benefits of our organizational alignment, our leadership in technology and applications, and our relentless focus on operational execution, we are more optimistic than ever about the exciting future that we see ahead in 2021 and beyond. “
It seems that investors agree with this assessment.