Desktop Metal (NYSE:DM) stock is falling hard on Tuesday following the release of the 3D printing company’s earnings report for the first quarter of 2022.
The bad news for DM stock begins with the company’s adjusted earnings per share of -22 cents. While that’s an improvement over the -25 cents reported in Q1 2021, it fails to meet the -13 cents per share that Wall Street was expecting.
However, the company’s revenue of $43.7 million was able to surpass the $41.61 million that analysts were looking for. It’s also a 286% increase compared to the $11.31 million reported during the same period of the year prior.
It’s also worth noting that Desktop Metal reaffirmed its revenue outlook of approximately $260 million for the full year of 2022. If that holds true, it would have it beating out Wall Street’s revenue estimate of $255.13 million for the year.
While those last couple points are positives, there’s one more major bit of news hammering DM stock today. The company revealed that it plans to raise money through issuing debt. This has it seeking to sell $150 million worth of convertible senior notes due 2027. Initial purchasers of the notes also have the option to acquire an additional $22.5 million worth of notes 13 days after the initial offering.
All of this news has shares of DM stock seeing heavy trading on Tuesday. That has some 21 million shares on the move as of this writing. To put that in perspective, the company’s daily average trading volume is around 5.7 million shares.
DM stock is down 42% as of noon Tuesday.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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