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The ExOne Company plummets on profitability concerns

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The ExOne Company plummets on profitability concerns

Shares of The ExOne Company (NASDAQ:XONE) traded sharply lower on Tuesday after the company reported a disappointing second quarter loss. Prior to the announcement shares trade higher by 7% to 52 week highs at $75.67 a share. However, in the after hours session these gains were erased with a move to the downside by more than 16% to $63.50 per share. Going into the quarter a number of analysts and traders alike recommended the stock for exposure to the 3D space, however, some have already started to question if the company is your best bet.

ExOne reported an $0.08 earnings per share loss for the quarter, missing the Thomson Reuters consensus estimate of ($0.06) by $0.02 per share  The company had revenue of $9.20 million for the quarter, compared to the consensus estimate of $9.33 million. The company’s quarterly revenue was up 97.2% on a year-over-year basis.

If you’re not yet familiar, ExOne recently hit the public markets and has moved dramatically to the upside since pricing at $18 per share earlier in the year. The ExOne Company engages in the development, manufacture, and sale of three dimensional printing machines and printing products in the Americas, Europe, and Asia. The company provides Max, Print, Flex, and Lab machines that enable designers and engineers to design and produce industrial prototypes and production parts.

While revenue growth looks impressive a number of analysts believe the steep drop in the after hours session is largely a result of valuation compression. Shares have already moved to the upside by over 320% in just 5 months. This move to the downside follows a number of analyst downgrades in recent weeks, however, accounting for the steep drop shares once again trade at consensus targets. On technical basis traders will be watching the company’s 50 day moving average at $63.40 for support on Wednesday. At this point shares trade just above this level and appear to be stabilizing slightly.

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