Why 3D Systems Stock Plunged After Earnings

3D Systems (NYSE: DDD) stock fell off a cliff today, down 25.3% through 12:10 p.m. ET after missing earnings and retracting its 2025 guidance last night.

Heading into the report, analysts already weren't optimistic, expecting the 3D printing company to report a $0.14 loss on $99.5 million in Q1 sales -- but the news was even worse. 3D Systems actually lost $0.21 per share, adjusted for one-time items, and its sales were only $95 million.

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3D Systems Q1 earnings

And in fact, this was the good news. The bad news is that sales declined 8% year over year, and the loss 3D reported -- already worse than expected -- was even bigger when calculated according to generally accepted accounting principles (GAAP). 3D's GAAP loss for the quarter was $0.28 per share, more than twice its losses of one year ago.

Management blamed "a decline in materials sales driven primarily by inventory management in the dental aligner market" for the shortfall, but reminded investors it is working hard to cut $50 million in annual costs to right the financial ship. 3D says these cost cuts should be fully in place by mid-2026, and announced further cuts that will save another $20 million as early as this year.

Is 3D Systems stock a buy?

Will these costs be enough? It's hard to say -- and 3D isn't saying. Management withdrew full-year guidance and warned of potential "protracted weakness in customer capex spending." 3D is still hoping to reach "profitability and the positive cash performance" eventually. For the time being, though, the company is losing money at the rate of more than $275 million a year, and burning nearly $69 million in cash annually.

I really can't recommend buying 3D stock until this changes.

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Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends 3D Systems. The Motley Fool has a disclosure policy.