3D Systems Stock Drops Even as Earnings and Revenue Beat Expectations
3D Systems (NYSE: DDD) reported third-quarter 2021 results after the market close on Monday that didn't satisfy market participants in the after-hours trading session. They drove shares down 11.8%.
The 3D printing company turned in solid quarterly results, with both revenue and earnings coming in higher than Wall Street's expectations. However, the culprit behind the sell-off was likely management's full-year guidance for adjusted gross margin. It implies that the fourth-quarter result for this metric (and hence, adjusted earnings) could be weaker than analysts anticipated.
This sell-off seems overdone, in my view. It seems likely that management issued a conservative outlook for this metric due to the uncertainties surrounding its supply chain and hiring employees in a tight labor market. These are macroeconomic issues nearly all companies are facing. Investors will learn more during the analyst earnings call, scheduled for Tuesday at 8:30 a.m. EST.
Source Fool.com
