3D Systems’ Stock Price Soars After 2Q2021 ResultsBy Alejandro Enríquez | Tue, 08/10/2021 - 13:08
3D Systems’ 2Q2021 financial report showed that its earnings per share (EPS) reached US$0.12, beating up estimates set by analysts of US$0.05 per share and leading its stock prices to soar over 10 percent after hours, according to Yahoo finance.
"It was in this tumultuous environment – the pandemic – that we launched our four-phase transformation plan: reorganize into Healthcare and Industrial business units, restructure to gain operating efficiencies, divest non-core assets and then invest for the future," said Jeffrey Graves, President and CEO of 3D Systems.
3D Systems is one of the largest players in the additive manufacturing industry, as it provides a diverse arrange of applications for a variety of sectors, automotive included. Additive manufacturing is part of the advanced tech solutions influencing automotive businesses. According to McKinsey, around 10 percent of today's manufacturing processes are expected to be replaced by additive manufacturing by 2030. Manufacturers expect 6.7 million 3-D printers to get shipped over the duration of 2020 alone.
3D Systems has announced partnerships with Toyota, the world's largest automaker by volume, to introduce new materials for Toyota Gazoo Racing. The automaker has mentioned that the solutions developed for TGR "are worth exploring" and might be included in other lines of automotive manufacturing.
During 2Q2021, 3D Systems’ revenue increased 44.1 percent compared to 2Q2020 and 11.3 percent compared to 1Q2021. The company noted that results were driven by its healthcare and industrial customers. "The results reflect continued strength in Healthcare and an increase in demand from Industrial customers as compared to last quarter. Compared to the same period last year, Industrial sales increased 25.3 percent to US$79.7 million and increased 49.6 percent when excluding businesses divested in 2020 and 2021. Compared to last quarter, Industrial sales increased 8.3 percent with solid demand in both products and materials," stated the company.
Graves said that the company's strategy amid the pandemic was to consolidate its business by divesting several of its units, including selling its On-Demand Parts business and Simbionix, a medical simulation business. "We are pleased to confirm that these transactions complete our efforts to exit non-core businesses, enabling our entire focus and investment priority to be on additive manufacturing moving forward," stated graves.
According to 3D Systems' fillings to the SEC, the company started to report Healthcare and Industrial segments on Jan. 1, 2021, as "the fair value of the Healthcare and Industrial reporting units exceeded their carrying values." Both segments represented fairly 50/50 of 3D Systems total sales' during 2021, healthcare being driven by dental-related and medical devices solutions.
The company also reports that higher product revenue from industrial applications was primarily due to higher volumes, favorable price mix and foreign currency fluctuations. "Not only is the global economy rebounding, but additive manufacturing is being implemented at an increasing rate in production as companies seek a more capable and flexible supply chain for critical components," said Graves.