3D Systems beats Q2 estimates with growth in health and industrial markets
3D Systems on Monday reported its second quarter financial results, beating market estimates in both its healthcare and industrial business units.
The additive manufacturing business has been busy selling off non-core assets to focus on these two markets and reported positive operating cash flow in Q2 of $13.5 million to support ongoing strategic investments.
The company's Q2 non-GAAP earnings per share came to 12 cents on revenue $162.6 million, an increase of 44.1 percent compared to the same period last year. Revenue increased 59.3 percent when excluding businesses divested in 2020 and 2021.
Analysts were expecting earnings of 5 cents per share on revenue of $143.28 million.
3D Systems also noted that, adjusted for divestitures, Q2 revenue was 11.4 percent higher than in second quarter 2019, reflecting acceleration beyond pre-pandemic performance levels.
"We are excited about the tremendous progress we have made this past year, reinforcing our foundation in additive manufacturing and positioning ourselves for a very exciting future," President and CEO Jeffrey Graves said in a statement. "From a strategic standpoint, as one of the largest companies in our industry, we have both the scale and the breadth of technologies, encompassing both polymers and metals, that our customers require for their success. We believe the magic for our company, and one that is increasingly evident in our results each quarter, is the intense organizational and operational focus we now have on delivering specific, market-leading customer applications, across both our Healthcare and Industrial businesses. Using this approach, we are successfully bringing together the hardware, materials and software technologies that our customers need for the successful adoption of additive manufacturing."
3D Systems in Q2 announced the sale of both its On-Demand Parts business and Simbionix, a medical simulation business. The sales of 3D Systems' non-core assets are expected to close in Q3. Once the deals are completed, cash on the balance sheet is expected to rise from $131.8 million at quarter end to over $500 million with no debt.
Revenue from Healthcare increased 68.6 percent to $82.8 million, compared to the same period last year, and increased 14.2 percent compared to last quarter. This increase from last quarter included double-digit growth in medical applications, as well as strong demand for dental materials.
Compared to the same period last year, Industrial sales increased 25.3 percent to $79.7 million, and increased 49.6 percent when excluding businesses divested in 2020 and 2021. Compared to last quarter, Industrial sales increased 8.3 percent with solid demand in both products and materials.