3D Printing ETF Surges After 3D Systems' Q4 Revenue Beat Expectations

An exchange traded fund focused on 3D printing was the best performer of Thursday after 3D Systems (DDD) issued a better-than-expected fourth quarter result.

The ARK 3D Printing ETF (CBOE: PRNT) advanced 10.3% on Thursday.

The ARK 3D Printing ETF tries to reflect the Total 3D-Printing Index’s performance, which is designed to track companies involved in the 3D printing industry. The Total 3D-Printing Index is composed of related companies from the U.S., non-U.S. developed markets and Taiwan that are engaged in 3D printing-related businesses engaged with 3D printing hardware, computer-aided design (“CAD”) and 3D printing simulation software, 3D printing centers, scanning and measurement, and 3D printing materials.

Among PRNT’s top holdings, 3D Systems surged 77.5% Wednesday. Additionally, Stratasys Ltd (SSYS) increased by 27.3%, and Materialise (MTLS) rose 13.2% as well. PRNT includes a 6.8% weight in DDD, 5.2% in SSYS, and 5.0% in MTLS.

3D Systems rallied on Thursday after the 3D printing company calculated its fourth-quarter revenue at $170 million to $176 million, or beating analysts’ $140 million estimate, TheStreet reports.

The 3D printing company likely capitalized from 3D unveiling its January 1 sale of two of its software businesses for $64.2 million, excluding $8.9 million of cash transferred to the buyer, a subsidiary of ST Acquisition Co. ST and an affiliate of Battery Ventures.

“In the summer of 2020, we laid out a four-stage plan to deliver increased value to our customers and shareholders,” 3D Chief Executive Jeffrey Graves said in a statement. “This plan included reorganization into two business units, healthcare and industrial solutions; restructuring of our operations to gain efficiencies; divesting of non-core assets; and investing for accelerated, profitable organic growth.”

The result: “significant progress from these efforts, as reflected in accelerated top-line growth and rapidly strengthening operating margins,” Graves added.

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