Voxeljet AG (VJET) is set to report third-quarter 2014 results on Nov 13. Last quarter, the company posted a positive surprise of 23.1%. Let us see how things are shaping up for this announcement.
Factors at Play
Voxeljet is optimistic about its performance going forward, on the basis of which the company has increased its printing capacity by 50% for fiscal 2014 in Germany. This apart, the company has started printing on-demand parts, moulds, cores and models for automotive and other industrial customers at its 50,000 square feet facility at Detroit. This facility is expected to prove accretive to revenues by the fourth quarter of 2014.
Moreover, the wide acceptance of 3D products across multiple industries is another positive for the company as this will lead to increased demand for both 3D printers and on-demand parts. In Oct 2014, the company acquired Propshop (Model Makers) to support the broad, growing consumer market for on-demand 3D printing services.
However, severe competition from peers, the rapidly evolving nature of the industry and increasing research & development (R&D) costs remain a concern.
Earnings Whispers?
Our proven model does not conclusively show that Voxeljet is likely to beat earnings this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or at least 3 to surpass earnings estimates. However, that is not the case here as you will see below:
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is pegged at 0.00%, as both the estimates stand at a loss of 5 cents.
Zacks Rank: Voxeljet has a Zacks Rank #3 (Hold) which increases the predictive power of ESP. However, a 0.00% ESP makes surprise prediction difficult.
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 momentum.
Stocks to Consider
Here are some companies that investors may want to consider as our model shows that they have the right combination of elements to post an earnings beat:
Apple Inc. (AAPL) with an earnings ESP of +0.40% and a Zacks Rank #1 (Strong Buy).
Impax Laboratories Inc. (IPXL) with an earnings ESP of +10.0% and a Zacks Rank #1.
AU Optronics Corp. (AUO) with an earnings ESP of +21.4% and a Zacks Rank #1.
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