3-D Printing Companies Face Challenges as 3D Systems Adjusts Outlook

Shares of 3-D printing companies traded broadly lower following an announcement by 3D Systems regarding its full-year outlook and cost-cutting plans.

Stock Performance

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%.

Revenue Expectations

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As a result of the challenging market conditions, 3D Systems has withdrawn its full-year guidance, which was initially issued in August.

Cost-Cutting Measures

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.

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