Shares of 3-D printing companies traded broadly lower following an announcement by 3D Systems regarding its full-year outlook and cost-cutting plans.
In morning trading, 3D Systems shares experienced the steepest decline in the sector, dropping approximately 14%. Stratasys shares also saw a significant decline of 10%, while Nano Dimension stock fell almost 4%.
Yesterday, 3D Systems stated that it anticipates third-quarter revenue to reach $123 million to $124 million. This falls below the $130 million estimate projected by analysts surveyed by FactSet. The company attributed this shortfall to a softness in 3D-printing services.
Adjustment of Guidance
As a result of the challenging market conditions, 3D Systems has withdrawn its full-year guidance, which was initially issued in August.
To address the financial difficulties and secure future profitability, 3D Systems is implementing various cost-cutting measures. The company plans to rationalize headcount and consolidate locations, aiming for annual savings of $45 million to $55 million by the end of 2024. This restructuring program was first announced in February.
While the 3-D printing industry faces uncertainties, companies like 3D Systems are proactively taking steps to mitigate challenges and adapt to the evolving landscape.