3D Systems(US:DDD) ZACKS·2024-09-13 20:11Core Insights - 3D Systems' shares have decreased by 63.6% year to date, contrasting with a 17.6% return in the broader Zacks Computer and Technology sector, primarily due to challenging macroeconomic conditions, weak customer demand, and intense competition [1] - The company reported revenues of $113.3 million in Q2 2024, reflecting an 11.7% year-over-year decline, mainly driven by reduced printer sales, although growth in materials and services partially offset this decline [1] - 3D Systems is advancing in additive manufacturing, with innovations in larger printer sizes and increased speed and reliability, which are attracting major players across various industries [1] Revenue and Earnings Projections - For 2024, 3D Systems projects non-GAAP revenues between $450 million and $460 million, with the Zacks Consensus Estimate at $454.77 million, indicating a 6.82% decline year over year [4] - The Zacks Consensus Estimate for earnings indicates a loss of 20 cents per share, which has increased by 150% in the past 30 days [4] Strategic Developments - 3D Systems received FDA 510(k) clearance for its TOTAL ANKLE Patient-Matched Guides, enhancing its position in personalized medicine and expanding into the orthopedic devices market, which is projected to grow at a CAGR of 11.2% to reach $5.3 billion by 2032 [2] - A strategic partnership with Precision Resource aims to enhance additive manufacturing capabilities, integrating 3D Systems DMP technology for critical component production [3] - Collaboration with NAMI and the Saudi Electricity Company focuses on localizing spare parts production to improve efficiency and reduce costs in the energy sector [3] Valuation and Market Position - The forward 12-month Price/Sales ratio for 3D Systems is 0.63X, higher than the sector average of 0.59X, indicating a stretched valuation [6] - The company currently holds a Zacks Rank of 4 (Sell), suggesting that investors should be cautious about the stock at this time [6]