What happened
Shares of 3D printing specialist3D Systems(NYSE: DDD) jumped as much as 18% in early trading on Wednesday after the company announced fourth-quarter 2022 financial results. As of 11:42 a.m. ET, the stock had settled to a 12.2% gain.
So what
It's hard to argue the quarter was good, but it did partially beat Wall Street's expectations. Revenue was down 12% to $132.7 million and the company reported a net loss of $25.6 million, or $0.20 per share. On an adjusted basis, which pulls out one-time items, the loss was $0.06 per share.
Those results aren't great, but analysts had projected an $0.08 loss per share on revenue of $134.3 million, so at least 3D Systems beat estimates on the bottom line.
Management did say that it expects 2023 revenue to grow in the mid-single digits and adjusted EBITDA and free cash flow to be positive, although detailed guidance numbers weren't given.
Now what
The results were clearly better than investors were expecting, but that doesn't make 3D Systems stock a good buy today. Revenue was down for the year and the company is losing money.
While the 3D printing business still has a bright future for an increasing number of use cases, it's not clear that a company like 3D Systems can consistently make money. The competition is fierce, and 3D printed products have essentially become a commodity, with lots of suppliers in the market. Despite today's pop in the stock, this isn't an earnings report that would make me an eager buyer.
10 stocks we like better than 3d Systems
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and 3d Systems wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of February 8, 2023
Travis Hoium has no position in any of the stocks mentioned. The Motley Fool recommends 3D Systems. The Motley Fool has a disclosure policy.
