Advertisement
Canada markets closed

  • S&P/TSX

    21,873.72
    -138.00 (-0.63%)
     

  • S&P 500

    5,071.63
    +1.08 (+0.02%)
     

  • DOW

    38,460.92
    -42.77 (-0.11%)
     

  • CAD/USD

    0.7303
    +0.0005 (+0.07%)
     

  • CRUDE OIL

    82.86
    +0.05 (+0.06%)
     

  • Bitcoin CAD

    88,049.85
    -3,122.61 (-3.42%)
     

  • CMC Crypto 200

    1,391.90
    -32.20 (-2.26%)
     

  • GOLD FUTURES

    2,325.00
    -13.40 (-0.57%)
     

  • RUSSELL 2000

    1,995.43
    -7.22 (-0.36%)
     

  • 10-Yr Bond

    4.6520
    +0.0540 (+1.17%)
     

  • NASDAQ futures

    17,459.50
    -205.00 (-1.16%)
     

  • VOLATILITY

    15.97
    +0.28 (+1.78%)
     

  • FTSE

    8,040.38
    -4.43 (-0.06%)
     

  • NIKKEI 225

    37,718.26
    -741.82 (-1.93%)
     

  • CAD/EUR

    0.6819
    0.0000 (0.00%)
     

Why Did 3D Systems Fall on CFO Replacement News? - Analyst Blog

Zacks Equity Research
Updated

In order to curtail its financial distress, 3D Systems Corporation DDD has decided to streamline its corporate structure. This leading 3D digital design and fabrication solutions provider penned a mutual separation deal with its Chief Financial Officer (‘CFO’), Ted Hull, effective as of the end of May 15. Subsequent to this, Hull was to leave 3D Systems for corporate and personal reasons.

Following the news release, shares of 3D Systems tumbled by around 3.1% and touched a 3-year low to close at $21.33 during the regular trading session on May 15. This is probably owing to disappointment among investors stemming from the company’s latest move.

Replacement Announced

3D Systems named its Chief Accounting Officer, David Styka, as the replacement for Hull. Having served 3D Systems since Jan 2015, Styka will take his new role as CFO effective following Hull’s departure.

ADVERTISEMENT

Before joining 3D Systems, Styka has worked at Family Dollar Stores Inc. FDO. Since 2008 through 2014, he served the company in several roles such as Vice President – Finance and Treasurer and Divisional Vice President – Tax and Inventory. Prior to this, Styka was associated with several top professional services firms of the world like Ernst & Young Global Limited and Deloitte Touche Tohmatsu Limited.

Bottom Line

We believe that Styka’s comprehensive know-how and expertise will prove beneficial for 3D Systems. Going forward, we expect the new CFO to bring in a modern perspective to the company’s financial decisions.

Since the past few quarters, 3D Systems has been battling weak quarterly performance, negative estimates revisions by analysts and considerable stock price declines. Though in the recently declared quarterly results, the company’s adjusted loss (including stock-based compensation) figure managed to exceed the Zacks Consensus Estimate, its guidance withdrawal decision upset the investors’ sentiments.

3D Systems presently carries a Zacks Rank #4 (Sell). Better-ranked stocks in the same sector include Cirrus Logic Inc. CRUS and Silicon Motion Technology Corp. SIMO, both sporting a Zack Rank #1 (Strong Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
FAMILY DOLLAR (FDO): Free Stock Analysis Report
 
3D SYSTEMS CORP (DDD): Free Stock Analysis Report
 
CIRRUS LOGIC (CRUS): Free Stock Analysis Report
 
SILICON MOTION (SIMO): Free Stock Analysis Report
 
To read this article on Zacks.com click here.