Notable Earnings: 3D Systems (DDD), Chesapeake Energy (CHK)

3D Systems Corporation (DDD) shares are down $0.30 to $23.91 in pre-market trading Wednesday after the company reported its first quarter earnings results.

The maker of 3D printers posted earnings of $0.05 per share on revenues of $160.7 million, up 8.7% from $147.7 million a year ago. Analysts were expecting EPS of $0.03 on revenues of $159.23 million. Q1 profit margin increased sequentially to 49.1%. The company’s net income loss for the period came in at ($13.2) million, or ($0.12) loss per share, from a profit of $4.87 million, or $0.05 per share, a year earlier.

3D said it believes that negative currency headwinds and demand weakness attributed to several other macroeconomic factors resulted in lower than expected purchases of its 3D printers and materials by aerospace, automotive and healthcare customers during the quarter.

“We were surprised and disappointed by the abrupt interruption in customer demand late in the quarter from several economic factors that we believe caused many of our customers to defer their planned investments,” said in a statement Avi Reichental, President and CEO, 3DS. “However, we believe the fundamentals of our business model and the strength of our portfolio are intact, and we are encouraged to see certain OEMs resuming purchasing activities they deferred during the first quarter.”

On valuation measures, 3D Systems Corp. shares, which currently have an average 3-month trading volume of 2.64 million shares, trade at a trailing-12 P/E of 224.17, a forward P/E of 23.74 and a P/E to growth ratio of 1.92. The median Wall Street price target on the name is $28.00 with a high target of $66.00. Currently ticker boasts 6 ‘Buy’ endorsements, compared to 14 ‘Holds’ and 4 ‘Sell’.

Profitability-wise, DDD has a t-12 profit and operating margin of 1.78% and 4.03%, respectively. The $2.71 billion market cap company reported $199 million in cash in its most recent quarter.

DDD currently prints a one year loss of about 50% and a year-to-date loss of 26.35%.

The chart below shows where the equity has traded over the last 52 weeks.

Chesapeake Energy Corporation (CHK) reported first quarter non-GAAP EPS of $0.11 before the opening bell Wednesday, compared to the consensus estimate of $0.04. Revenues decreased 45.3% from last year to $2.76 billion. Analysts expected revenues of $3.45 billion. Q1/15 net income was a loss of $3.74 billion, or ($5.72) per share, which compares to net income of $374 million, or $0.54 per share in the 2014 first quarter.

Doug Lawler, Chesapeake’s Chief Executive Officer, commented, “Chesapeake is meeting the challenge of low commodity prices head-on and delivered a very strong first quarter. Adjusted for asset sales, our production in the 2015 first quarter grew by 14% compared to the 2014 first quarter. Our cash costs remain at industry-low levels and we expect our assets to continue delivering greater efficiencies even as we reduce our activity levels throughout 2015.”

Profitability-wise, the natural gas Oklahoma City-based company has a t-12 profit and operating margin of 9.15% and 17.11%, respectively. The $10.52 billion market cap company reported $2.90 billion in cash vs. $20 billion in total liabilities in its most recent quarter.

CHK currently prints a one year loss of about 40% and a year-to-date loss of around 18%.

The stock is currently up $0.34 to $16.20 on 240K shares.

Be the first to comment

Leave a Reply

Your email address will not be published.


*