Why Is 3D Systems (DDD) Down 7.9% Since Last Earnings Report?

It has been about a month since the last earnings report for 3D Systems (DDD). Shares have lost about 7.9% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is 3D Systems due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for 3D Systems Corporation before we dive into how investors and analysts have reacted as of late.3D Systems Q2 Earnings Beat Estimates, Revenues Down Y/Y3D Systems reported a non-GAAP loss of 7 cents per share in the second quarter, narrower than the Zacks Consensus Estimate of a loss of 13 cents. The company reported a loss of 14 cents per share in the year-ago quarter.DDD generated revenues of $94.8 million, down 16.3% year over year and lagging the consensus mark by 3.56%. The decline was primarily attributed to a challenging macroeconomic environment, including uncertainty around tariffs, which caused large OEM customers to reduce their capital expenditure (CapEx) spending on new production capacity. Product revenues declined 25% year over year to $53.8 million in the second quarter, accounting for 56.7% of total revenues. Services revenues, contributing 43.3% to revenues, declined 1.2% year over year to $41 million.DDD’s Quarterly DetailsThe company operates through two key segments — Healthcare Solutions and Industrial Solutions — tailored to the diverse industries it serves. Healthcare Solutions focuses on dental, medical devices, personalized health services and regenerative medicine, whereas Industrial Solutions caters to aerospace, defense, transportation and general manufacturing.In the second quarter, Healthcare Solutions' revenues decreased 7.9% year over year to $45 million. This decline was primarily driven by reduced purchases in the Dental segment, particularly from a specific customer who had made significant purchases in 2024.The MedTech business within Healthcare Solutions grew 13% year over year and 16% sequentially, driven by strong demand for personalized health services and FDA-cleared surgical guides and implants. Industrial Solutions' revenues also declined 22.6% year over year to $49.8 million.DDD’s non-GAAP gross profit fell 19.8% year over year to $37.2 million. The non-GAAP gross profit margin declined 170 basis points to 39.2% due to a less favorable mix following the divestiture of the Geomagic business in the second quarter of 2025.Adjusted EBITDA fell $5.3 million year over year against a loss of $12.9 million in the same period last year.3D Systems’ Balance Sheet DetailsAs of June 30, 2025, cash and cash equivalents were $116.4 million, lower than $135 million as of March 31, 2025. The decline was primarily due to $59.6 million in cash used for operating activities and cash used in financing activities of $97.3 million, partially offset by cash provided by investing activities of $112.9 million.As of June 30, 2025, DDD had a total debt of $122.6 million, up from $212.3 million as of March 31, 2025.How Have Estimates Been Moving Since Then?Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.VGM ScoresAt this time, 3D Systems has a nice Growth Score of B, a score with the same score on the momentum front. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.Outlook 3D Systems has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report 3D Systems Corporation (DDD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks