3D Systems Corporation DDD is slated to report second-quarter 2015 results on Aug 6, 2015.
Last quarter, the company had posted a positive earnings surprise of 50.00%. However, the company had missed in three of the trailing four-quarters, leading to average negative earnings of 6.25%.
Let's see how things are shaping up for this announcement.
Factors to Consider
3D System has been suffering from challenging quarters, with no respite in sight. Though the company’s first-quarter earnings figure managed to exceed the Zacks Consensus Estimate, its guidance withdrawal decision upset investors’ sentiments. Notably, citing current market uncertainties as the reason for low visibility, 3D Systems withdrew its previous earnings and revenue guidance for 2015. Specifically, the sudden drop in consumer demand in late first-quarter 2015, as pointed out by 3D Systems, interrupted the revenue gains and explain its inability to provide guidance figures for the year ahead. Consequently, following the earnings announcement shares took a tumble.
Echoing similar sentiments, analysts dropped their expectations for 3D Systems. Over the last 30 days, the Zacks Consensus Estimate for 2015 and 2016 tumbled around 11% to 25 cents and 7% to 58 cents, respectively.
Nevertheless, the aggressive product-launching spree and strategic deals of 3D Systems in the second-quarter 2015, could help it ride over and post decent quarterly results.
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 -100.00%.
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:
Amtech Systems Inc. ASYS, with an Earnings ESP of +8.00% and a Zacks Rank #3.
SunEdison Inc. SUNE, with an Earnings ESP of +13.33% and a Zacks Rank #3.
2U Inc. TWOU, with an Earnings ESP of +3.57% and a Zacks Rank #3.
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