Why 3D Systems Stock Crashed After Earnings

Core Viewpoint - 3D Systems reported disappointing Q4 2024 earnings, leading to a significant drop in stock price, reflecting ongoing challenges in sales and profitability [1][2][5]. Financial Performance - Q4 2024 earnings showed a loss of $0.19 per share, nearly double the expected loss of$0.11, with sales at $111 million, below the forecast of$115.2 million [2][3]. - Year-over-year sales for Q4 decreased by 3%, and gross profit margin fell by 730 basis points to 31% [3]. - For the full year, sales declined by 10% to $440.1 million, with gross margins down 290 basis points to 37.3$1.94 per share [4]. Cash Flow and Operational Insights - The company experienced negative free cash flow of $61 million in 2024, an improvement from$107.9 million in 2023 [4]. - CEO Dr. Jeffrey Graves acknowledged the challenges in 2024 due to weak customer capital expenditures but noted an uptick in sales in Q4 and improvements in consumables sales [5]. Future Outlook - Despite some positive indicators, 3D Systems forecasts sales of no more than $435 million in 2025, which is lower than the previous year [5].