Back to top

Image: Bigstock

What's in Store for 3D Systems (DDD) This Earnings Season?

Read MoreHide Full Article

3D Systems (DDD - Free Report) is slated to release second-quarter 2021 results on Aug 9.

The Zacks Consensus Estimate for revenues is pegged at $141.9 million, indicating a year-over-year increase of 26.7%.

Moreover, the consensus mark for earnings is pegged at 5 cents per share, reflecting a strong improvement from the loss of 13 cents per share reported in the year-ago quarter.

3D Systems’ earnings beat estimates in two of the trailing four quarters for as many misses, the average surprise being 123.2%.

Let’s see how things have shaped up prior to the upcoming announcement.

3D Systems Corporation Price and EPS Surprise 3D Systems Corporation Price and EPS Surprise

3D Systems Corporation price-eps-surprise | 3D Systems Corporation Quote

Kay Factors to Note

3D Systems’ second-quarter performance is expected to have benefited from increased demand for its Healthcare segment products, as the markets and the supply chain recover from the impact of the pandemic. Also, stabilization at the Industrial division is likely to have fueled top-line growth during the quarter under review.

Strength in demand for additive solutions in general across industries is likely to have been a tailwind.

The company’s cost-saving efforts, which include cost-restructuring activities as well as reduced hiring and lower travel expenses due to the coronavirus pandemic, are expected to have boosted margins in the second quarter.

Additionally, 3D Systems’ divestitures of Cimatron and GibbsCAM software businesses for $65 million in fourth-quarter 2020 have helped it eliminate debts. This is likely to have positively impacted the balance sheet of the company, leaving it in a net cash position.

What Our Model Says

Our proven model does not 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.

Though 3D Systems currently carries a Zacks Rank of 3, it has an Earnings ESP of -42.31%.

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 release:

Avnet, Inc. (AVT - Free Report) has an Earnings ESP of +9.82% and currently flaunts a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

CACI International (CACI - Free Report) has an Earnings ESP of +6.62% and holds a Zacks Rank of 2, currently.

Arrow Electronics (ARW - Free Report) has an Earnings ESP of +0.77% and carries a Zacks Rank #2, at present.

Published in