3D Systems (DDD) came out with a quarterly earnings of $ 0.09 per share, losing Zacks’ consensus estimate of $ 0.11 per share. This compares to the previous year’s earnings of $ 0.05 per share. These numbers are adjusted for non-recurring items.
This quarterly report represents a surprise of gains of -18.18%. A quarter ago, this 3D printer manufacturer was expected to post a loss of $ 0.08 per share when, in fact, it produced a loss of $ 0.03, showing a 62.50% surprise.
In the past four quarters, the company has exceeded consensus EPS estimates twice.
3D Systems, which belongs to the Zacks – Mini computer industry, posted revenues of $ 172.65 million in the quarter ended December 2020, losing Zacks’ consensus estimate by 0.43%. This compares to the previous year’s revenue of $ 164.57 million. The company has surpassed consensus revenue estimates only once in the past four quarters.
The sustainability of the immediate stock price movement based on the newly released figures and expectations of future earnings will depend mainly on management’s comments on the earnings call.
3D Systems’ shares have increased by about 242% since the beginning of the year, compared to the 1.5% gain of the S&P 500.
What’s next for 3D systems?
Although 3D Systems has outperformed the market so far this year, the question that comes to investors’ minds is: what’s next for stocks?
There are no easy answers to this key question, but a reliable measure that can help investors resolve this is the company’s earnings outlook. This includes not only expectations of current consensus gains for the coming quarters, but also how those expectations have recently changed.
Empirical research shows a strong correlation between short-term stock movements and trends in revised profit estimates. Investors can either track these reviews on their own or rely on a tried and tested rating tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate reviews.
Prior to this release of results, the trend for revision of estimates for 3D Systems was favorable. While the magnitude and direction of revisions to the estimates may change after the company’s recently released earnings report, the current status translates to a Zacks Rank # 2 (Buy) for the stock. Therefore, stocks are expected to outperform the market in the near future. You can see the full list of today’s Zacks # 1 Rank (Strong Buy) stocks here.
It will be interesting to see how the estimates for the coming quarters and the current fiscal year change in the coming days. The current consensus estimate for EPS is $ 0.05 on $ 134.96 million in revenue for the next quarter and $ 0.34 on $ 564.44 million in revenue for the current fiscal year.
Investors should be aware of the fact that the outlook for the sector can also have a significant impact on stock performance. In terms of Zacks Industry Rank, Computer – Mini computers is currently among the top 2% of the 250 plus Zacks Industries. Our research shows that the top 50% of the industries rated at Zacks surpass the bottom 50% by a factor of more than 2 to 1.
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3D Systems Corporation (DDD): Free Stock Analysis Report
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