3D Systems Corporation DDD is slated to report third-quarter 2015 results on Nov 4, 2015, before the opening bell.
Last quarter, the company had posted a negative earnings surprise of 166.67%. Also, the company had missed in three of the trailing four quarters, leading to average negative earnings of 41.25%.
Let's see how things are shaping up for this announcement.
Factors to Consider
Over the past few quarters, 3D Systems has been experiencing unfavorable broader market conditions that have badly hit its financial performance. The company had also withdrawn its guidance in the first quarter of 2015 due to strong volatility in the macroeconomic environment, which severely upset investors. Macroeconomic factors such as economic slowdown, inflation, currency fluctuations, commodity prices and credit availability are negatively impacting the company’s performance. If these problems persist, 3D Systems’ earnings will be curbed again in to-be-reported quarter.
Echoing similar sentiments, analysts dropped their expectations for 3D Systems. Over the last 90 days, the Zacks Consensus Estimate for third-quarter 2015 and full-year 2015 tumbled around 90% to 1 cent and 88% to 3 cents, respectively.
Nevertheless, the aggressive product-launching spree and strategic deals of 3D Systems in the to-be-reported quarter could help it ride over.
Earnings Whispers?
Our proven model does not conclusively show that 3D Systems will beat earnings this season. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold)for this to happen. This is not the case here, as you will see below.
Zacks ESP: 3D Systems currently has a negative Earnings ESP, as the difference between the Most Accurate estimate and Zacks Consensus Estimate is -400.00%.
Zacks Rank: 3D Systems has a Zacks Rank #4 (Sell). Note that we caution against stocks with Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies that investors may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Callon Petroleum Co. CPE, with an Earnings ESP of +66.67% and a Zacks Rank #2.
Aquinox Pharmaceuticals Inc. AQXP has an Earnings ESP of +43.90% and a Zacks Rank #1.
Air Lease Corp AL has an earnings ESP of +2.86% and a Zacks Rank #2.
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