Why Desktop Metal was outpacing the market today

What happened

Metal desk (DM 1.16%) released its latest set of quarterly results on Tuesday morning, and investors were wondering exactly what to make of it. Shares of the 3D printer maker have oscillated between marginal gains and slight losses, generally hovering slightly above the performance of the S&P500 index. By mid-afternoon, Desktop Metal shares were flat compared to the previous day’s close.

So what

For the quarter, Desktop Metal posted record revenue of just under $58 million, more than triple the nearly $19 million in the same quarter last year and slightly above estimates. analysts. However, the company’s non-GAAP (adjusted) net loss worsened to more than $30 million ($0.10 per share) from the shortfall of just over $21 million. one year ago. Collectively, the forecasters were expecting a shortfall of just $0.08 per share.

Desktop Metal quoted its Founder and CEO, Ric Fulop, as saying “Our strong financial results represent the strength and breadth of our unrivaled AM 2.0 portfolio as our team continues to execute at a high level in a macro environment. dynamic”.

“AM” stands for additive manufacturing, which basically refers to the layering process that 3D printers use to produce their output.

Now what

Desktop Metal also reaffirmed its full 2022 revenue and earnings before interest, tax, depreciation and amortization (EBITDA) guidance.

The company continues to expect around $260 million in revenue for the year, which if achieved would be more than 130% higher than the 2021 tally. This would also top the estimate. analyst average of nearly $251 million. As for EBITDA, the company estimates it will be a loss of around $90 million for the year. No net profitability forecast was provided.

Eric Volkman has no position in the stocks mentioned. The Motley Fool has no position in the stocks mentioned. The Motley Fool has a disclosure policy.