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3D Systems Corp. (DDD) Information Technology - Computers & Peripherals | Reports May 5, Before Market Opens

Key Takeaways

• The Estimize consensus is calling for a 7 cent gain per share on $153.65 million in revenue, 2 cents higher than Wall Street on the bottom line and $3 million on the top
• 3D Systems remains focused on building out its healthcare business which grew 9% last quarter
• The company’s balance sheet appears to be in shambles as they only begin to recover from unfavorable market conditions
• What are you expecting for DDD? Get your estimate in here!

3D Systems is scheduled to report first quarter earnings today before the market opens. Since its last report the stock is significantly up with investors more optimistic on the outlook of the company. Last quarter, the company ended an 8 quarter streak of missing on both the top and bottom line. Despite failing to issue guidance, expectations are generally upbeat as demand for 3D printers are slowly gaining traction and economic volatility is easing.

The Estimize consensus is calling for a 7 cent gain per share on $153.65 million in revenue, 2 cents higher than Wall Street on the bottom line and $3 million on the top. In the past 3 months per share estimates have climbed 112% and now reflect a projected 47% increase on a year over year basis. Revenue on the other hand has been relatively flat and is expecting to fall 3% this quarter. Despite some weak earnings in the past, the stock typically does well following earnings. In the day following an earnings report, shares on average are up 4%, increasing to 6% gains 30 days after. 

The company’s focused strategy and emergence in the healthcare industry has finally started to pay off. Last quarter the company’s healthcare business grew 9% driven by robust offerings as well as increasing demand from clients who print medical and dental devices. 3D Systems has also focused on improving existing 3D printers, strengthening partnerships and enhancing productivity. During the quarter the company announced its decisions to cease production on its entry level 3D printer in an effort to devote resources to more high margin opportunities. The company is well positioned to capitalize on new opportunities as various companies are now opting for 3D solutions for their day to day needs.

On the downside, the DDD is struggling with unfavorable currency headwinds in particular. Furthermore, 3D systems holds a weak balance with cash and cash utilized in operating activities that continues to decline. Last quarter, cash on hand was down $130 million from a year earlier with cash flow from operating activities down $48 million.