3D Systems Posts an Adjusted Earnings Loss on Writedown and Other Factors; Stock Plummets

3D Systems Posts an Adjusted Earnings Loss on Writedown and Other Factors; Stock Plummets

3D Systems (NYSE: DDD) reported disappointing third-quarter 2017 earnings after the market closed on Tuesday. The diversified 3D-printing company's revenue edged down 2.2% and its loss per share widened year over year. Adjusted for one-time factors, the company's per-share results turned negative from a positive in the year-ago quarter.

Earnings were negatively impacted by a $12.9 million legacy products and parts inventory writedown, execution issues in the Americas and Asia-Pacific regions, and pricing pressure in some businesses, particularly metals and on-demand manufacturing.  

Shares of 3D Systems plunged 15.4% in after-hours trading, which we can attribute to results falling short of Wall Street's expectations and the company withdrawing 2017 guidance. Management said the unpredictability surrounding the legacy product quality and reliability issues, which have proven deeper and broader than expected, make providing an outlook difficult. The stock should be under pressure during the regular trading session on Wednesday.

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Source: Fool.com