Stifel Reiterates Hold Rating on ExOne (XONE) Following 1Q

Stifel maintained a Hold rating on The ExOne Company (NASDAQ: XONE) following the company's 1Q earnings report and conference call. Revenue in the quarter was $8.4 million, below the consensus of $9.0 million. On the call management highlighted having received nine new orders from seven different customers so far in 2Q for a mix of both direct and indirect printers. XONE did not provide quarterly guidance, after not providing full-year guidance last quarter.

Analyst Patrick Newton commented, "Post the company’s earnings call earlier today we maintain our Hold rating with no material changes to our thesis. Lumpy order trends, lack of visibility, and extended revenue recognition periods continue to result in limited confidence in quarter-to-quarter trends. Management remains cautiously optimistic on the second half of the year, as macro challenges remain in place, but the company is seeing its binder jetting technology gain greater acceptance among large industrial companies. Although we anticipate y/y growth stemming from revenue recognition drawn down from $16.4 million in backlog, and continued growth from the PSC business, we have limited comfort in material machine orders or backlog growth currently. On the call, management highlighted that despite its cautious optimism, the company is increasing its focus on reducing operating expenses and more efficiently managing its working capital. We remain Hold rated with XONE needing to put together a string of strong quarters consisting of accelerating top-line growth and expanding gross margin in order to regain investor confidence."

For an analyst ratings summary and ratings history on The ExOne Company click here. For more ratings news on The ExOne Company click here.

Shares of The ExOne Company closed at $10.48 yesterday.

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