3D Systems DDD is gearing up to unveil its financial performance for the fourth quarter of 2023 on Feb 28.
The Zacks Consensus Estimate for the bottom line remains at break-even, with no changes in the past month. In the same quarter a year ago, 3D Systems reported a loss of 6 cents per share.
Over the last four quarters, the company exceeded the Zacks Consensus Estimate twice, fell short once, and hit the mark once, with an average surprise of 32.29%.
3D Systems Corporation Price and EPS Surprise
3D Systems Corporation price-eps-surprise | 3D Systems Corporation Quote
As we count down to the revelation, let’s delve into the factors shaping up the backdrop.
Factors to Keep an Eye On
3D Systems is expected to face headwinds in its Q4 results due to challenges in the industrial market. The tough macroeconomic scenario, including rampant inflation, might have a dampening effect on revenue growth.
Despite this, the company’s diverse portfolio catering to various industrial sectors such as semiconductor equipment, aerospace, defense, automotive, and electric vehicles, could offer a silver lining.
The gross margin is expected to witness expansion driven by improved operational efficiencies. However, increased research and development expenses may put a dent in the bottom line.
Moreover, 3D Systems’ heavy reliance on the dentistry market, which forms nearly half of its healthcare business, coupled with the impact of inflation on aligner demand, could weigh on revenues for the quarter under review.
Insights from Our Model
According to our Zacks model, a positive Earnings ESP along with a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) enhances the likelihood of an earnings beat. Unfortunately, this is not the case here.
With an Earnings ESP of 0.00% and a current Zacks Rank #3, 3D Systems seems to be in an equilibrium state. Keep tuned in for discerning insights as the results unfold.
Potential Stock Picks
Here are a few companies worth considering, as per our model’s prediction, having the right mix to potentially outperform earnings expectations in their upcoming disclosures:
Semrush holds an Earnings ESP of +23.08% and currently carries a Zacks Rank #2. For an in-depth exploration of more promising stocks, check out today’s Zacks #1 Rank stocks here.
Mark your calendars for Semrush’s fourth-quarter 2023 earnings announcement on Mar 4. SEMR shares have increased by 54.2% year to date.
VTEX boasts an Earnings ESP of +500.01% and currently holds a Zacks Rank #2 positioned for success.
VTEX is all set to disclose its fourth-quarter 2023 results on Feb 27, following a commendable return of 46.6% in shares year to date.
SentinelOne currently enjoys an Earnings ESP of +16.30% along with a Zacks Rank #3.
SentinelOne’s fourth-quarter fiscal 2024 results are slated for Mar 13, with an uplifting 31.1% return in shares year to date.
Stay informed on the upcoming earnings releases with the Zacks Earnings Calendar.
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