Tuesday, April 22, 2014

Looking Beyond The Disappointing Results Of This 3-D Printing Stock

This article was originally published by GuruFocus on April 14, 2014

By Sarfaraz A. Khan and Gohar Yousuf. 
ExOne (XONE) has recently released its quarterly results that disappointed investors as the company swung to a surprising loss. Moreover, its forecast was also well below market’s expectations. Its shares are down 54.6% this year and closed at $27.56 on Friday.

Despite all the pessimism, the 3-D printing industry is growing at an accelerated pace, driven by strong demand from bigger enterprise buyers. ExOne is betting its future on the growth of the metals printing industry, including the replacement parts market. The company has already attracted some big enterprise customers. With the decline in prices, ExOne could attract even more clients.
For the current year, ExOne has forecast at least 40% revenue growth.

Disappointing Earnings

In the fourth quarter, ExOne’s revenues fell 16.1% from last year to $10.7 million as the company swung to a net loss of $3.20 million, or $0.22 per share, from a profit of $902,000. Analysts, on the other hand, were expecting a profit of $0.01 per share from revenues of $12.1 million.

During the quarter, ExOne sold 12 3D printing machines, an improvement from eight printers sold a year ago. However, the company managed to sell just three higher-margin S-Max printers, as compared to five in the corresponding quarter last year. As a result, the machine's revenues, which are 66% of the company’s total revenues, dropped 21.3% to $7 million. .. read full article at GuruFocus