Arcam AB EarningsI love earnings season, especially when I’m pretty confident that at least one of my 3D printing stocks will have a strong report coming.

The 3D printing stock that I believe will have the most impressive Q3 earnings growth to report is Arcam AB (AMAVF), and I’ll explain why in this article.

 

Arcam AB Earnings

 

Arcam is expected to report Q3 on or about October 18.

(For those new to this comparatively unknown 3D printing company there are several due diligence links at the end of this article.  Many subscribers to 3DPrintingStocks.com have been Arcam shareholders from under $50. You may consider subscribing (box on left of page).  It’s free and your email will never be shared.)

 

Earnings History 2008-2012

Steady increase in earnings to .61/share in 2012

Year

2008

2009

2010

2011

2012

Revenue (Millions SEK)

58.3

74.5

90.5

107.7

139.1

Revenue ($ USD)

$8.8M

$11.3M

$13.7M

$16.3M

$21.1

Net margins

neg

neg

2%

5.1%

10.8%

Net Profit/Loss

(Millions SEK)

-20.4

-6.5

1.8

5.5

15.0

Net Profit/Loss

($ USD)

-$3.1M

-$0.98M

$0.27M

$0.83M

$2.3M

Income per share (SEK)

-0.32

-0.22

.01

0.04

4.04

Income per share ($ USD)

-.05

-.03

0.002

0.006

0.61

Source: Arcam Annual Review 2012

 

With a strong first half of 2013 reported, Arcam’s trailing twelve month earnings stand at .85/share with a market cap of $462M (10/03/13)

 

In Q3 of 2012 Arcam delivered just 3 machines for $3.9 million in revenue and essentially broke even.

Looking Ahead to Q3 2013:  CEO Magnus René stated in this interview in July, “we had 12 system orders in the order book in end of June. Lead time from order to delivery can vary a lot but is on average 3 months”.

Production capacity shouldn’t be an issue. Arcam expanded their facilities in March (using cash).

Some of the forward looking statements the CEO made at the beginning of Q3 include:

  • “We have a financial position that provides the strength needed to continue to grow the company”
  • “A strong order book and a positive business situation lays a solid  foundation for continued strong growth in 2013”
  • “the aftermarket is developing well”

 

My Estimate For Q3

My Q3 estimate is that Arcam will report delivery of 10 printer machines with revenue (which includes their contract manufacturing segment) to be approximately $11 million and earnings of .23-.25/share for the quarter.

2013

Q1

Q2

Q3   (Est.)

Delivered   Systems

4

7

10

Revenue

$5.9M

$8.5M

$11.0M

 

Arcam AB’s growth (all organic with no dilutive acquisitions) has been consistent and strong.   I believe that trend will continue in the second half of this year and into 2014 based on many of the drivers discussed in the articles and files linked below.

 

 Some Key Metric Comparisons between industry “peer” (?) XONE and AMAVF

Company

ExOne

Arcam   AB

Shares Outstanding

14.4 million

4.13 million

Market cap (10/02/13)

$629M

$462M

ttm revenue

$ 38.42M

$27.50M

Revenue/share

$   2.89

$ 7.33

Diluted EPS (ttm)

0.68

0.85

Cash/share

$ 4.49

$ 6.06

Debt

$ 3.50M

0

Operating cash flow (ttm)

9.44M

$4.73M

 

Arcam research/due diligence links:

 

Arcam AB Earnings

Arcam AB Presentation August 2013

General overview of company, technology, growth drivers:
Arcam AB: Small 3D Printing Company with Big Growth Projections  (7/21/2013)

 

MUST READ on EBM (Electron Beam Melting) seen as the technology of choice by PwC in high-grade printing of metals for defense and aerospace applications:
PricewaterhouseCoopers on 3D Printing and EBM (Electron Beam Melting) Technology used by Arcam AB (8/10/2013)

 

Amazing research project wrapping up with new patents to increase the productivity of the (EBM 3D printing) process by a factor of 5
Arcam AB Nears Completion of  Fast EBM 3D Printing Research  (7/25/2013)

 Arcam AB Earnings

Q&A with the CEO of 3D Printing Company, Arcam AB (AMAVF)  (8/01/2013)

 

ExOne and Arcam:  A Fundamental Tale of Two 3D Printing Companies  (8/6/2013)

 

Arcam Receives Two Orders for EBM Systems for China (8/14/2013)

 

3D Printing of Titanium Aluminide Turbochargers:  A Turbocharge for Arcam AB Earnings?  (9/13/2013)

 

Disclosure: I am long shares of Arcam AB.  I received no compensation from Arcam AB or any third party for this article.

Disclaimer:  See site disclaimer on left of page.

 

Gary Anderson……..Follow me on Twitter: @3DPrintingStock

 

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