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XMTR delivered better-than-expected results twice in the trailing four quarters, while it missed estimates in other two quarters, the earnings surprise being 12.1%, on average. Its bottom line surpassed the Zacks Consensus Estimate by 64.3% in the last reported quarter.
Let’s see how things have shaped up for the company this earnings season.
Key Factors and Estimates for Q4
Xometry is expected to have benefited from strong marketplace growth across several customer verticals, including general manufacturing, industrial equipment, and aerospace and defense. Growth in the company’s injection molding unit with investments in technology and processes have been driving and expanding its pipeline. This is likely to get reflected in the upcoming quarter’s performance.
The company expanded its marketplace functionality with the recent integration of Teamspace, expanding its enterprise sales solutions and driving its organic buyer growth. Also, XMTR’s constant focus on enhancing its marketing efficiency with record additions in net active buyers are likely to have augmented its performance in the fourth quarter.
Continuous efforts in strengthening its international presence with strategic partnerships along with the growing orders across recently launched markets are likely to have bolstered revenues in the fourth quarter. Also, its focus on innovation, strategic positioning and pricing actions are also expected to have supported margins in the to-be-reported quarter. Xometry anticipates its overall revenues to increase in the range of 30% from the year-ago levels in the fourth quarter.
Despite the positives, weakness in its supplier services unit owing to discontinued sale of tools and materials is likely to have marred its performance in the to-be-reported quarter.
XMTR has been witnessing escalating cost of sales and marketing expenses which are likely to weigh on its bottom-line results. For instance, in the first nine months of 2023, its cost of sales and marketing expenses rose 20.5% and 16.1%, respectively, on a year-over-year basis. Also, given the company’s substantial international presence, foreign currency headwinds might affect top-line results.
Our proven model doesn’t conclusively predict an earnings beat for Xometry this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, but that’s not the case here, as elaborated below.
Xometry has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
XMTR has a Zacks Rank #3 at present.
Performance of Other Industrial Companies
A. O. Smith Corporation’s (AOS - Free Report) fourth-quarter 2023 adjusted earnings of 97 cents per share surpassed the Zacks Consensus Estimate of 96 cents. The bottom line jumped 13% year over year. Net sales of $988.1 million narrowly missed the consensus estimate of $989 million. However, the top line increased 5.6% year over year.
Illinois Tool Works Inc. (ITW - Free Report) reported fourth-quarter 2023 adjusted earnings of $2.42 per share, which surpassed the Zacks Consensus Estimate of $2.40. Earnings increased 3.4% year over year. The company’s revenues of $3.98 billion missed the consensus estimate of $4.01 billion. The top line inched up 0.3% year over year.
Stock to Consider
Here is a company within the broader Industrial Products sector, which according to our model, has the right combination of elements to beat on earnings this season.
Image: Bigstock
Xometry (XMTR) Gears Up to Post Q4 Earnings: What to Expect
Xometry, Inc. (XMTR - Free Report) is scheduled to release fourth-quarter 2023 results on Feb 29, before market open.
XMTR delivered better-than-expected results twice in the trailing four quarters, while it missed estimates in other two quarters, the earnings surprise being 12.1%, on average. Its bottom line surpassed the Zacks Consensus Estimate by 64.3% in the last reported quarter.
Let’s see how things have shaped up for the company this earnings season.
Key Factors and Estimates for Q4
Xometry is expected to have benefited from strong marketplace growth across several customer verticals, including general manufacturing, industrial equipment, and aerospace and defense. Growth in the company’s injection molding unit with investments in technology and processes have been driving and expanding its pipeline. This is likely to get reflected in the upcoming quarter’s performance.
The company expanded its marketplace functionality with the recent integration of Teamspace, expanding its enterprise sales solutions and driving its organic buyer growth. Also, XMTR’s constant focus on enhancing its marketing efficiency with record additions in net active buyers are likely to have augmented its performance in the fourth quarter.
Continuous efforts in strengthening its international presence with strategic partnerships along with the growing orders across recently launched markets are likely to have bolstered revenues in the fourth quarter. Also, its focus on innovation, strategic positioning and pricing actions are also expected to have supported margins in the to-be-reported quarter. Xometry anticipates its overall revenues to increase in the range of 30% from the year-ago levels in the fourth quarter.
Despite the positives, weakness in its supplier services unit owing to discontinued sale of tools and materials is likely to have marred its performance in the to-be-reported quarter.
XMTR has been witnessing escalating cost of sales and marketing expenses which are likely to weigh on its bottom-line results. For instance, in the first nine months of 2023, its cost of sales and marketing expenses rose 20.5% and 16.1%, respectively, on a year-over-year basis. Also, given the company’s substantial international presence, foreign currency headwinds might affect top-line results.
Xometry, Inc. Price and EPS Surprise
Xometry, Inc. price-eps-surprise | Xometry, Inc. Quote
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Xometry this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, but that’s not the case here, as elaborated below.
Xometry has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
XMTR has a Zacks Rank #3 at present.
Performance of Other Industrial Companies
A. O. Smith Corporation’s (AOS - Free Report) fourth-quarter 2023 adjusted earnings of 97 cents per share surpassed the Zacks Consensus Estimate of 96 cents. The bottom line jumped 13% year over year. Net sales of $988.1 million narrowly missed the consensus estimate of $989 million. However, the top line increased 5.6% year over year.
Illinois Tool Works Inc. (ITW - Free Report) reported fourth-quarter 2023 adjusted earnings of $2.42 per share, which surpassed the Zacks Consensus Estimate of $2.40. Earnings increased 3.4% year over year. The company’s revenues of $3.98 billion missed the consensus estimate of $4.01 billion. The top line inched up 0.3% year over year.
Stock to Consider
Here is a company within the broader Industrial Products sector, which according to our model, has the right combination of elements to beat on earnings this season.
Plug Power Inc. (PLUG - Free Report) has an Earnings ESP of +11.53% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
It is slated to release fourth-quarter results on Mar 1. The stock has declined 20.8% in the past three months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.