3D Systems Corp. (N:DDD) Information Technology - Computers and Peripherals | Reports February 29, Before Market Opens
Key Takeaways
- The Estimize consensus is calling for EPS of $0.03, 1 cent below Wall Street, and revenue expectations of $171.41 million, roughly $13 million above the Street
- A systemic market drop off coupled with unfavorable macroeconomic conditions have been troubling for 3D Systems and all other 3D printing companies.
- Historically, 3D Systems has rarely beat the Estimize consensus, trumping EPS estimates a meager 7% of the time.
What was once expected to be the next big thing, 3D Systems (DDD) and all other 3D printing companies had another disappointing 2015. 3D Systems is coming off a dismal third quarter, posting 94% YoY declines on the bottom line while also missing its sales number. Macroeconomic factors, particularly currency headwinds, have been the biggest hindrance to the company’s financial performance, as it generates a large portion of its revenue from international markets. Unfortunately, weaker conditions are expected to persist through 2016 and adversely impact earnings. This should bode poorly for shares, which fell 65.3% in the past 12 months.
This quarter, the Estimize consensus is calling for EPS of $0.03, 1 cent below Wall Street, and revenue expectations of $171.41 million, roughly $13 million above the Street. However our Select Consensus, which more heavily weights historically accurate analysts and recent estimates, is predicting greater sales gains of $177.48 million. Compared to Q4 2014, this projects as a YoY decline in profitability and sales of 86% and 9%, respectively. Historically, 3D Systems has rarely beat the Estimize consensus, trumping EPS estimates a meager 7% of the time.
Over the past few quarters, 3D systems has encountered a systemic dropoff that has badly hurt its financial performance. For the most part, currency headwinds have made it difficult for the company to produce modest growth. Last quarter, the 3D printer maker reported 9% revenue declines on a year over year basis. Even on a constant currency basis, revenue dipped 3%. 3D Systems competes in a highly competitive industry where it not only faces pressure from other 3D printing companies but also traditional manufacturers of small plastics Despite its challenges, the company remains focused on expanding through strategic partnerships and entering the healthcare industry. Remarkably, 3D systems has very manageable debt and has continued to remain cash flow positive despite the volatile markets.