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3D Systems (DDD) to Report Q3 Earnings: What's in the Cards?
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3D Systems (DDD - Free Report) is slated to report third-quarter 2021 results on Nov 8.
The Zacks Consensus Estimate for revenues is pegged at $145.4 million, suggesting growth of 7.6% from the year-ago reported figure. The consensus mark for earnings stands at 6 cents per share, which indicates a significant improvement from the year-ago quarter’s loss per share of 3 cents.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 162.8%.
3D Systems’ third-quarter performance is expected to have benefited from increased demand for its Healthcare segment products. Stabilization at the Industrial division is likely to have contributed to the to-be-reported quarter’s top line.
Strong demand in dental applications and advanced manufacturing of medical devices might get reflected in the third-quarter top line. Strength in demand for additive solutions in general across industries may have acted as a tailwind in the quarter to be reported.
Nonetheless, normal seasonality and headwinds related to supply constraints may have weighed on the overall third-quarter performance. On its last earnings conference call, the company had stated that seasonality impact usually results in a 4-5% decline in revenues from the second quarter to the third quarter.
The company’s cost-saving efforts, which include cost-restructuring activities, reduced hiring and lower travel expenses due to the coronavirus pandemic, are expected to have boosted margins in the third 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.
In the second quarter, the company announced divestiture of Simbionix which was completed in the third quarter. This may have favored the performance in the quarter to be reported.
The company expects a strong balance sheet with $500 million of cash and no debt at the close of the third 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 #3 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 release:
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3D Systems (DDD) to Report Q3 Earnings: What's in the Cards?
3D Systems (DDD - Free Report) is slated to report third-quarter 2021 results on Nov 8.
The Zacks Consensus Estimate for revenues is pegged at $145.4 million, suggesting growth of 7.6% from the year-ago reported figure. The consensus mark for earnings stands at 6 cents per share, which indicates a significant improvement from the year-ago quarter’s loss per share of 3 cents.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 162.8%.
3D Systems Corporation Price and EPS Surprise
3D Systems Corporation price-eps-surprise | 3D Systems Corporation Quote
Factors to Note
3D Systems’ third-quarter performance is expected to have benefited from increased demand for its Healthcare segment products. Stabilization at the Industrial division is likely to have contributed to the to-be-reported quarter’s top line.
Strong demand in dental applications and advanced manufacturing of medical devices might get reflected in the third-quarter top line. Strength in demand for additive solutions in general across industries may have acted as a tailwind in the quarter to be reported.
Nonetheless, normal seasonality and headwinds related to supply constraints may have weighed on the overall third-quarter performance. On its last earnings conference call, the company had stated that seasonality impact usually results in a 4-5% decline in revenues from the second quarter to the third quarter.
The company’s cost-saving efforts, which include cost-restructuring activities, reduced hiring and lower travel expenses due to the coronavirus pandemic, are expected to have boosted margins in the third 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.
In the second quarter, the company announced divestiture of Simbionix which was completed in the third quarter. This may have favored the performance in the quarter to be reported.
The company expects a strong balance sheet with $500 million of cash and no debt at the close of the third 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 #3 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 release:
Golden Entertainment, Inc. (GDEN - Free Report) has an Earnings ESP of +18.44% and a Zacks Rank #1 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
HP (HPQ - Free Report) has an Earnings ESP of +1.89% and a Zacks Rank #2 currently.
Uber Technologies (UBER - Free Report) has an Earnings ESP of +17.08% and a Zacks Rank #3 currently.