Barclays Maintains an 'Equalweight' on 3D Systems (DDD); Concerns about Earnings Power Emerge

Barclays maintains an 'Equalweight' on 3D Systems (NYSE: DDD) price target cut from $19 to $17.

Barclays analyst says, "For 4Q11, we now expect EPS of $0.19 (was $0.21) based on 24% y/y revenue growth to $64.05 million (was $64.99 million), gross margin of 49.6% (was 49.2%) and operating margin of 18.2% (was 21%). For FY11 we now estimate EPS of $0.73 (was $0.78) based on 40.5% y/y revenue growth to $224.6 million (was $226.5 million), gross margin of 48.0% (was 47.8%) and operating margin of 16.0% (was 17.2%). Due to increased operating expenses, we now estimate 2012 EPS of $0.80 (was $0.97) based on 17.9% y/y revenue growth to $265 million (was $279 million), gross margin of 52.3% (was 52.4%) and operating margin of 20.9% (was 23.9%). We are also lowering our FY13 EPS estimate to $0.92 (was $0.97) based on 14.8% y/y revenue growth to $304 million (was $329 million), gross margin of 55.1% (was 57.7%) and operating margin of 23.7% (was 29.1%)."

For more ratings news on 3D Systems click here and for the rating history of 3D Systems click here.

Shares of 3D Systems closed at $16.12 yesterday.

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