3D Systems Corporation (NYSE:DDD) Just Released Its Full-Year Earnings: Here's What Analysts Think
The analysts might have been a bit too bullish on 3D Systems Corporation (NYSE:DDD), given that the company fell short of expectations when it released its yearly results last week. Revenues missed expectations somewhat, coming in at US$488m, but statutory earnings fell catastrophically short, with a loss of US$2.85 some 360% larger than what the analysts had predicted. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for 3D Systems
Following last week's earnings report, 3D Systems' six analysts are forecasting 2024 revenues to be US$488.8m, approximately in line with the last 12 months. Losses are predicted to fall substantially, shrinking 92% to US$0.23. Before this latest report, the consensus had been expecting revenues of US$508.4m and US$0.11 per share in losses. So it's pretty clear the analysts have mixed opinions on 3D Systems after this update; revenues were downgraded and per-share losses expected to increase.
The average price target was broadly unchanged at US$5.74, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic 3D Systems analyst has a price target of US$8.25 per share, while the most pessimistic values it at US$4.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's also worth noting that the years of declining revenue look to have come to an end, with the forecast stauing flat to the end of 2024. Historically, 3D Systems' top line has shrunk approximately 5.4% annually over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.2% per year. So it's pretty clear that, although revenues are improving, 3D Systems is still expected to grow slower than the industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for 3D Systems going out to 2025, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for 3D Systems that we have uncovered.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
