Editor’s note: This article was originally published yesterday.
Well … that was quick.
Yesterday, 3D Systems Corporation (NYSE:DDD) tranquilized the bears by meeting analysts’ earnings expectations, and maintaining its previous full-year 2013 guidance. When all was said and done, the stock managed to close up nearly 7% for the day.
Then, just this morning, the additive manufacturing specialist announced the acquisition of Rapid Product Development Group (RPDG), a “provider of on-demand additive and traditional manufacturing services.”
Quick! Before the ink dries…
Curiously, though, management stayed relatively quiet on the guidance front until an analyst from BB&T asked for clarification during the earnings conference call yesterday morning.
In response, 3D Systems Corporation (NYSE:DDD) CEO Abraham Reichental stated
We stand by the guidance that we have given. Nothing has changed. We didn’t see any need to particularly mention it, but I believe that our guidance was $1.00 to $1.15 on revenue of $440 million to $485 million.
With the acquisition of RPDG, however, 3D Systems Corporation (NYSE:DDD) proceeded to simultaneously raise its 2013 guidance. Now, the company expects revenue in the range of $460 million to $510 million, and non-GAAP earnings per share between $1.05 and $1.20. All told, that means RPDG should positively contribute around $20 million to $25 million in sales, with earnings of around $0.05 per share.
According to its website, RPDG was founded in 2003, currently has more than 350 employees, and boasts over 150,000 square feet of manufacturing facilities across its operations in the U.S., Mexico, China, and the U.K.
Foolish final thoughts
The only remaining question, then, is how much 3D Systems Corporation (NYSE:DDD) actually paid for RPDG. After all, the company generated $10.7 million in cash from operations over the past three months, and ended its first quarter with around $110.5 million on its balance sheet. Considering 3D Systems paid a little over $23 million for Quickparts in 2011 — and remembering that Quickparts managed 2010 revenue of $25 million — I don’t think 3D Systems would have paid much more for RPDG.
At any rate, I suppose that few investors should be surprised at the announcement, given 3D Systems’ unrelenting streak of recent acquisitions. Besides, nobody minds a purchase that quickly proves accretive to both revenue and earnings.
The article 3D Systems Puts On Its Shopping Gloves originally appeared on Fool.com.
Fool contributor Steve Symington owns shares of 3D Systems. The Motley Fool recommends 3D Systems. The Motley Fool owns shares of 3D Systems and has the following options: Short Jan 2014 $36 Calls on 3D Systems and Short Jan 2014 $20 Puts on 3D Systems.
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