Geo Week News

August 13, 2013

3D printing firm's stock sinks 17% on disappointing Q2 results


The ExOne Company’s Q2 loss, revenue both miss analysts’ estimates

Anticipating encouraging second quarter financial results from The ExOne Company, a maker of 3D printing machines and printed products for industrial customers, investors Tuesday pushed its stock to an all-time high of $78.80.

ExOne’s stock (Nasdaq: XONE) closed Tuesday up nearly 7 percent to $75.67. Minutes later, it released second quarter results reporting a net loss of $1.1 million, or $0.08 per share, missing analysts’ estimates of a loss of $0.06 cents per share.

And, despite being 97 percent higher than last year’s second quarter sales, ExOne’s $9.2 million in sales for the quarter ended June 30 also missed Wall Street’s expectations of $9.33 million.

After hours investors hammered the stock, sending shares down nearly 17 percent to almost $63. The stock recovered some on Wednesday morning, but still trading down about 6 percent to just over $70 a share.

Quite the opposite, shares of 3D printing firm Stratasys Ltd. Tuesday also reached an all-time high of $104.34, just days after posting $0.45 adjusted earnings per share (EPS) for the quarter, beating analysts’ consensus estimate of $0.44 by $0.01. Revenue was $106.5 million for the quarter, beating analysts’ expectations of $105.5 million. And, if you had any doubts about mainstream adoption of 3D printing, take a look at Stratasys’ results.

Meanwhile, ExOne reported second quarter EBITDA was a $300,000 loss, improved from a loss of $2.7 million in last year’s second quarter, and gross margin during the quarter increased to 45 percent from 33 percent in the second quarter of the prior year, ExOne reported.

2013 guidance 

The company said it now sees FY2013 revenue at the lower end of its previous guidance of $48 million to $52 million, versus analysts’ consensus of $50.5 million. The expectations are based on no additional laser drilling machine sales this year, the timing of year-end shipments, and a weak yen.

“We believe our results continue to demonstrate the effective execution of our growth strategies,” said CEO Kent Rockwell. “We are increasing machine sales, expanding our PSC network and building our material and binders portfolio. We believe ExOne remains distinctively positioned as a leading industrial provider of 3D printing machines and printed products, and we expect demand to continue to increase.”

Machine sales

During the second quarter, machine revenue was $5.8 million. Four S-Max platform machines, the largest of its 3D printing machines, were sold in the quarter. One machine was sold to customers in each of Japan, India, Russia and the United States and machine revenue represented 63 percent of total revenue in the second quarter. One S-Max machine was sold in the prior-year second quarter.

Production Service Center (PSC) revenue for the second quarter was $3.4 million, up 6 percent over the prior-year second quarter. PSC revenue represented 37 percent of the quarter’s total revenue.

Approximately $40 million to $50 million in growth investments are planned for 2013 and 2014, including approximately $20 million for the recently announced expansion and consolidation of the company’s German operations.

The company’s shares debuted in February at $18 per share. Its 52-week stock price ranges from $23.50-$78.80. The company has a market capitalization of just over $1 billion.

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