3D Systems (DDD -1.44%) stock is plunging today following the publication of the company's preliminary third-quarter results and update. The 3D-printing and engineering specialist's share price was down 22.5% as of 11:45 a.m. ET.
After the market closed yesterday, 3D Systems released preliminary Q3 sales results. In addition to the revenue preview, the company also announced that it would be delaying the filing of its quarterly 10-Q report with the Securities and Exchange Commission (SEC).
Wall Street isn't happy with 3D Systems' preliminary sales results
3D Systems expects to record sales of roughly $112.9 million in the third quarter. If that estimate winds up matching actual performance for the period, sales will decline roughly 8.8% compared to Q3 2023. Wall Street had already anticipated an annual sales decline in the quarter, but the company's forecast fell short of the average analyst estimate's call for sales of approximately $115.7 million in the period.
Materials sales are actually projected to grow 10% year over year in the quarter, but the improvement for the category was offset by declining revenue from 3D-printer systems amid macroeconomic headwinds. Management also said that third-quarter performance was negatively impacted by deals that were expected to close in the period being pushed out to the fourth quarter.
Investors are seeing ominous signs with 3D Systems delayed 10-Q filing
3D Systems expects to release its third-quarter results and host a conference call the week of Nov. 25. Management's commentary suggests that deals that were expected to close last quarter have now been completed in the current quarter. If so, the company could see sales additions in Q4 that offset softness in Q3.
But the company also announced that it would not make the deadline to file its official 10-Q quarterly report with the SEC due to "the need for an interim valuation of goodwill and long-lived assets, triggered by recent performance of the company's stock and market volatility as of September 30, 2024." While it remains to be seen what's eventually contained in the report, the announcement of the delay may have triggered concerns that 3D Systems is poised to take significant write downs and impairment charges on acquisitions or other assets.
