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Zacks #1 Rank Top Performers

3D Systems (TDSC) and Arctic Cat (ACAT)

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By: James Giaquinto
March 30, 2011 | Comment(s): 0
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BC | ACAT | JOUT | TDSC

As if 3D stuff weren't cool enough, there's also potential for some profit here, as 3D Systems Corporation (TDSC) has been proving for a while now. The company has been pretty hot, and on Wednesday it reached the apex of the Zacks #1 Rank Top Performers List.

Shares of the company almost gained by double digits with a rise of 9.78% today. Volume was impressive, moving nearly 880,000 shares, compared to a daily average of almost 300,000.

The only news out of TDSC today was its plans to expand its in-house manufacturing activities. The company expects to manufacture more 3D printer models, which certainly seems like a good idea since its 3D printers were one of the big reasons for its strong fourth quarter report.

Last month, the company reported earnings per share of 35 cents, which topped the Zacks Consensus Estimate by nearly 35%. This marked the third straight quarter with a positive EPS surprise. In the past 6 quarters, the company has beaten 5 times and matched once.

Revenue jumped by 42% to $51.6 million, compared to last year's $36.4 million. All of its revenue categories contributed to this growth.

Earnings estimates have been standing still over the past month. However, you can still clearly see the positive reaction stemming from the quarterly report. The Zacks Consensus Estimate for 2011 is $1.39 per share, which is up more than 37% from 2 months ago. Meanwhile, the Zacks Consensus Estimate for 2012 is $1.87, or more than 27% better in that time.

These outlooks also suggest profit growth of 34.5% for next year over this year.

3d systems earnings trends.

3D Systems is a leading provider of 3D content-to-print solutions, including 3D printers, parts and print materials. It is the only company on the Zacks #1 Rank List today from the computers-mini industry.

Though approximately 2% behind 3D Systems, Arctic Cat Inc. (ACAT - Snapshot Report) was still the next top performer on the Zacks #1 Rank List Wednesday. Shares advanced by a little more than 7.7%, but volume was only about 85,000 shares, which is below the daily average of more than 105,000.

Last week, ACAT got a boost when a brokerage firm upgraded the company to 'Buy' from 'Hold'. But ACAT doesn't have to wait around for an analyst to make a move; the company makes its own news by routinely surpassing Wall Street's quarterly expectations. Take a look at this chart:

arctic cat earnings surprises.

In late January, the company surpassed the Zacks Consensus Estimate by more than 250%, as earnings per share of 50 cents trounced the expectation of 14 cents. Sales were up 16% to $152 million from $131 million. Snowmobile sales were up 33%, while all-terrain vehicle sales advanced 1%.

The biggest news in the quarter, though, was the boost to the fiscal 2011 EPS outlook. Arctic Cat now expects between 57 cents and 65 cents for the year, compared to its earlier outlook of 40 cents to 55 cents.

The Zacks Consensus Estimate for this fiscal year, ending this month, reflects the revision. At 65 cents per share, there has been no movement in the past 2 months, but the guidance has jumped by 27.5% in 3 months.

Meanwhile, the Zacks Consensus Estimate for the fiscal year ending March 2012 is 83 cents, which is up nearly 4% in just the past 7 trading days. It is also advanced by 22% in 3 months. Currently, next year's guidance suggests year-over-year profit growth of 28%.

arctic cat earnings trends.

Arctic Cat designs, engineers, manufacturers and markets all-terrain vehicles and snowmobiles under the Arctic Cat® brand name, as well as related parts, garments an accessories.

It is one of 3 companies from the leisure & recreation products industry on today's Zacks #1 Rank List. The other 2 names are Brunswick Corporation (BC - Snapshot Report) and Johnson Outdoors, Inc. (JOUT - Snapshot Report).

Read the full analyst report on BC

Read the full analyst report on ACAT

Read the full analyst report on JOUT

Read the full analyst report on TDSC

 

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