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

Zacks Equity Research

3D Systems DDD is slated to release first-quarter 2020 results on May 6.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $139.8 million, suggesting an 8% decline from the year-ago reported figure.

The company is likely to report a loss in the quarter. The Zacks Consensus Estimate is pegged at a loss per share of 5 cents. However, the company’s loss per share is expected to be narrower than the year-ago quarter’s loss of 9 cents.

Notably, 3D Systems surpassed estimates in three of the trailing four quarters and missed in the other, the average negative surprise being 75%.

3D Systems Corporation Price and Consensus

3D Systems Corporation Price and Consensus

3D Systems Corporation price-consensus-chart | 3D Systems Corporation Quote

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

Factors at Play

3D Systems’ first-quarter performance is expected to have been negatively impacted by the business and supply-chain disruptions due to the coronavirus outbreak. During the Feb 26 fourth-quarter 2019 earnings conference call, the company stated its inability in operating the ODM factory in China due to the coronavirus-led lockdown.

Moreover, the coronavirus-induced massive supply-chain disruptions might have hurt 3D Systems’ product shipments in the quarter under review. Additionally, as the pandemic has had a sector-wide impact, some of 3D Systems’ customers are also expected to have either cancelled or postponed purchases.

Furthermore, a bleak 3D printing demand due to the prevalent weakness in manufacturing activities and industrial productions are likely to have hurt 3D Systems’ quarterly performance. In addition, headwinds due to the ordering patterns of a large enterprise customer and the temporarily-suspended operations of factory metal systems might have marred first-quarter revenues.

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.

3D Systems currently carries a Zacks Rank of 3 and has 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 this quarter:

Inphi Corporation IPHI has an Earnings ESP of +20.04% and holds a Zacks Rank of 2 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shopify Inc. SHOP has an Earnings ESP of +23.41% and currently carries a Zacks Rank of 2.

Etsy, Inc. ETSY has an Earnings ESP of +18.31% and holds a Zacks Rank of 2, at present.

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