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3D Systems’ fourth-quarter performance is expected to have benefited from increased demand for its products, as the markets and the supply chain recover from the impact of the pandemic.
Furthermore, in the last quarter’s earnings conference call, management had mentioned its intention of achieving $30 million of cost savings in the fourth quarter.
Notably, the company expects to complete the divestiture of its Cimatron and GibbsCAM software businesses for $65 million. The proceeds from the sale are expected to have strengthened the balance sheet of the company, leaving it in a net cash position.
However, being a high-margin business, the divestiture of Cimatron is expected to keep the gross margin under pressure during the fourth quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for 3D Systems this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
3D Systems currently has a Zacks Rank of 2 and an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming releases:
Autodesk, Inc. (ADSK - Free Report) has an Earnings ESP of +2.29% and a Zacks Rank of 3, at present.
Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +0.75% and currently, a Zacks Rank of 3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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3D Systems (DDD) to Report Q4 Earnings: What's in the Offing?
3D Systems (DDD - Free Report) is slated to release fourth-quarter 2020 results on Feb 24.
The Zacks Consensus Estimate for revenues is pegged at $171.76 million, indicating year-over-year growth of 4.37%.
Moreover, the consensus mark for earnings is pegged at 11 cents per share, suggesting a surge of 120% from the year-ago quarter’s earnings.
3D Systems’ earnings beat estimates in three of the trailing four quarters and missed it once, the average surprise being 116.08%.
Let’s see how things have shaped up prior to the upcoming announcement.
3D Systems Corporation Price and EPS Surprise
3D Systems Corporation price-eps-surprise | 3D Systems Corporation Quote
Factors to Consider
3D Systems’ fourth-quarter performance is expected to have benefited from increased demand for its products, as the markets and the supply chain recover from the impact of the pandemic.
Furthermore, in the last quarter’s earnings conference call, management had mentioned its intention of achieving $30 million of cost savings in the fourth quarter.
Notably, the company expects to complete the divestiture of its Cimatron and GibbsCAM software businesses for $65 million. The proceeds from the sale are expected to have strengthened the balance sheet of the company, leaving it in a net cash position.
However, being a high-margin business, the divestiture of Cimatron is expected to keep the gross margin under pressure during the fourth quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for 3D Systems this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
3D Systems currently has a Zacks Rank of 2 and an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming releases:
Workday, Inc. (WDAY - Free Report) has an Earnings ESP of +1.21% and a Zacks Rank of 2, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Autodesk, Inc. (ADSK - Free Report) has an Earnings ESP of +2.29% and a Zacks Rank of 3, at present.
Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +0.75% and currently, a Zacks Rank of 3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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