Shares in 3-D Systems are off nearly 27% this morning after releasing extremely weak full-year guidance.
The company now sees adjusted 2014 earnings per share coming in at $US0.73 to $US0.85. Consensus expectations according to Bloomberg was $US1.29.
Expected 2013 adjusted EPS also missed expectations. The company now sees a range $US0.83 to $US0.97 — a downward revision from $US0.93 to $US1.03, and below the consensus estimate of $US0.97.
Last month, Credit Suisse downgraded 3-D on concerns about losing market share to rival Stratasys.
Dow Jones reports the company has announced “substantial” R&D spending increases to try to close that gap. “As we previously stated, we are willing to tolerate earnings reduction and even slight gross-profit-margin compression during this period to substantially accelerate our growth rate and market share,” says CEO Avi Reichental.
Here’s the stock chart for DDD: