3D Systems Corp.'s (DDD) third quarter profit popped 87% as the company saw double-digit sales growth, led by strong printer unit demand.
Shares surged 10% to $39.50 as revenue comfortably beat Wall Street estimates.
3D raised its view for the year, now expecting its revenue between $345 million to $365 million and adjusted per-share earnings between $1.20 to $1.30, up from its prior view of revenue between $330 million to $360 million and adjusted earnings between $1 to $1.25 a share.
"We are very pleased to report another outstanding quarter driven by doubling printer units sales," Chief Executive Abe Reichental said. He noted Cube 3D printer orders continue to exceed the company's expectations, and are now available for next day shipment. "While we still don't expect revenue from our consumer growth initiative to be material to our revenue for the remainder of 2012, we are very pleased with the overall reception," he added.
For the quarter, 3D reported a profit of $13.5 million, or 24 cents a share, versus $7.2 million, or 14 cents a share, a year earlier. Stripping out one-time items, the per-share profit was up at 32 cents from 18 cents a year ago. Revenue rose 57% to $90.5 million.
Analysts polled by Thomson Reuters expected per-share earnings of 32 cents on revenue of $98 million.
Gross margin widened to 51.8% from 48.3%.
The company reported growth from all its revenue categories, led by printer revenue on a 123% increase in printer units sold, excluding Cube printer units.
The company said its 3D printer units sold more than doubled from the year-ago period, accounting for a $19.3 million revenue increase. Print materials revenue grew 38% to $25.5 million, driven by strong sales of printer units.
"Never mind the computer on every desktop, that’s a given. In the near future, teachers and students will want or have a 3D printer on the desk to help them learn core Science, Technology, Engineering and Mathematics (STEM) principles.