Today's Research on 3D Systems and Cummins: Diversified Machinery Stocks Look Cautious
LONDON, February 27, 2013 /PRNewswire/ --
Budding industrial segments offers attractive returns but also have high risk quotient. Case in point is 3D Systems Corp. (NYSE: DDD) as its stock delivered triple digit growth in the past 52 weeks. The sales and profit also rose significantly, but could not match elevated expectations, sending the share price down in the stock market. On the other hand, Cummins Inc. (NYSE: CMI) provided low single digit growth in stock price with modest dividend yield. However, the company's returns come with low risk quotient. Overall, the sector offers good investment opportunities for both value and growth investors. StockCall professionals have completed their technical analysis on 3D Systems and Cummins and these free reports are accessible by registering at http://www.stockcall.com/research
3D Systems Corp. Announces Higher Sales and Profits
3D Systems reported its quarterly results and its revenue grew 45 percent but failed to meet consensus estimates. For its fourth quarter, the company generated $101.6 million in revenue. Its annual sales climbed 53.5 percent to touch $353.6 million figure. Its net income was reported at $1.25 per share. Despite the good growth rate displayed, the company's results lagged behind consensus estimates. It also provided conservative outlook for 2013 where its revenue is likely to be in the range of $440 million and $485 million. Its earnings are expected to be in the range of $1.00 and $1.15 per share. Sign up for the free technical research on 3D Systems Corp. at http://www.StockCall.com/DDD022713.pdf
3D Systems is engaged in additive manufacturing and the industry is in an infancy stage. However, the company itself holds a leadership position in the sector. Its stock grew 118 percent in the past 12 months. However, so far this year it lost 1 percent of its value. The overall trend looks good for the stock; nonetheless investors should be aware of the challenges faced by this nascent segment. Despite the run up in its stock price in the past 52 weeks, 3D Systems still has the steam to go up in the stock market.
Cummins Inc. Provides Fiscal 2013 Outlook
Cummins stock is up 4.6 percent on a YTD basis. It also offers 1.76 percent dividend yield and recently paid 50 cents per share in dividend. The company is in the mature stage and provides low yet steady return to its investors. Cummins holds a leadership position in diversified machinery segment. Be sure to read our latest technical research on Cummins Inc. by registering at http://www.StockCall.com/CMI022713.pdf
It announced its fourth quarter results and the company surpassed analysts' expectations. Its revenue for the quarter stood at $4.29 billion, beating the estimates by 5 percent. However, on a YoY basis, it declined 12.8 percent. Similarly its net income for the quarter also dropped 30.5 percent to $2 per share. Cummins was expected to report its net income at $1.75 per share.
Cummins also provided its outlook for fiscal 2013. The company expects its revenue to remain flat or to decline by 5 percent. Cummins Inc. is currently facing soft demands for trucks. The industry-wide malady has hit the company hard. The company had to revise its 2012 outlook downward twice during the year. The company's management reported that it improved its margins during the quarter. With the improvement in general economy and construction sector, the company may see some reprieve on the demand front.
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