Shares in 3D Systems took a hit in premarket trading following a report of disappointing results for the fourth quarter. The company saw a significant drop in revenue and an expanded loss, with expectations for ongoing sales challenges in 2024.
Revenue Decline and Widening Loss
The South Carolina-based 3D printer company experienced a 14% decrease in revenue, falling well below analyst predictions. This decline was primarily attributed to weaknesses in dental orthodontics and reduced printer sales due to customer delays in spending.
The fourth-quarter loss also grew substantially, reaching $300.4 million compared to $25.6 million the previous year. 3D Systems reported an adjusted loss of 11 cents per share, far exceeding the anticipated 1 cent per share loss among analysts.
Future Outlook and Strategic Initiatives
CEO Jeffrey Graves acknowledged the difficult macroeconomic and geopolitical environment that impacted the company's performance. Despite hopes for improvement, he warned of ongoing sales challenges ahead. The company anticipates flat revenue for 2024, aiming for a range between $475 million and $505 million.
In response to these pressures, 3D Systems plans to focus on completing their restructuring program, including workforce reductions, consolidating operations, and cutting external expenses. The goal is to achieve break-even or positive adjusted earnings before interest, taxes, depreciation, and amortization.
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