What Happened?

Shares of 3D printing company 3D Systems (NYSE: DDD) fell 22.4% in the afternoon session after the company reported preliminary third-quarter sales results which fell below Wall Street's expectations. The sales weakness was attributed to macro factors that affected the demand for hardware systems. The company also noted that there were delays in closing some transactions, which resulted in the affected deals being pushed to the fourth quarter. 

Overall, the results indicate the company is yet to overcome some of the challenges that have contributed to the declining sales recorded in the previous quarters.

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What The Market Is Telling Us

3D Systems’s shares are extremely volatile and have had 65 moves greater than 5% over the last year. But moves this big are rare even for 3D Systems and indicate this news significantly impacted the market’s perception of the business. 

The biggest move we wrote about over the last year was about 2 months ago when the stock gained 9.2% on the news that the company announced it received FDA approval for its jetted dentures solution, which uses its jetting technology to create durable, aesthetically pleasing dentures. The FDA approval should provide a clearer path to commercialization and signal to investors that the company can monetize the product. 

Notably, the company is partnering with Glidewell, one of the largest dental laboratories, as part of its market penetration efforts. 

Also, the global 3D printed dentures market is expected to reach $2 billion by 2028 (using estimates from 360 Market Updates), and the announcement suggests 3D Systems is well-positioned to capture market share.

3D Systems is down 54.6% since the beginning of the year, and at $2.79 per share, it is trading 59% below its 52-week high of $6.79 from December 2023. Investors who bought $1,000 worth of 3D Systems’s shares 5 years ago would now be looking at an investment worth $311.17.

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