What Happened?
Shares of 3D printing company 3D Systems (NYSE: DDD) fell 10.1% in the morning session after the company reported third-quarter financial results that showed a significant drop in revenue.
Although the company's loss per share of $0.08 was better than the forecasted loss of $0.12, it missed revenue expectations, reporting $91.2 million against an anticipated $97.68 million. This figure represented a 19% decline compared to the same period in the previous year. The weakness was broad-based, as the company’s Industrial Solutions and Healthcare Solutions segments both experienced large revenue drops of 16% and 22%, respectively. The sharp fall in sales overshadowed the better-than-expected earnings, leading to a negative reaction from investors.
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What Is The Market Telling Us
3D Systems’s shares are extremely volatile and have had 73 moves greater than 5% over the last year. But moves this big are rare even for 3D Systems and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 17 days ago when the stock gained 19.5% on the news that positive news on corporate earnings, easing political and trade tensions, and optimism about future interest rate cuts all converged to lift investor sentiment.
The overall market, including the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, climbed significantly. A major catalyst was Apple shares rising 4% after a firm upgraded its rating, citing improving iPhone demand and predicting a long growth cycle. More broadly, the third-quarter earnings season got off to a strong start, with 76% of the 58 S&P 500 companies beating expectations, lifting the market's mood.
Additionally, there was hope for an end to the ongoing U.S. government shutdown, which is seen as good for the economy. Investors also moved past recent fears over credit risks that had caused a sell-off the previous week, with shares of regional banks rebounding. Finally, signs that trade tensions with China were de-escalating, including expectations that new tariffs might be avoided, added to the overall positive momentum, leading traders to focus on more favorable factors like earnings and potential Federal Reserve rate cuts.
3D Systems is down 27.8% since the beginning of the year, and at $2.31 per share, it is trading 51.1% below its 52-week high of $4.72 from February 2025. Investors who bought $1,000 worth of 3D Systems’s shares 5 years ago would now be looking at an investment worth $370.19.
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