3D Systems results: what to watch on August 8?
3D systems (DDD -1.31%) is expected to report second-quarter 2022 results after market close on Monday, August 8. A conference call with analysts is scheduled for the following day at 8:30 a.m. ET.
The report of the 3D printing company will follow that of its rival Stratasyswhich plans to publish its quarterly results before the market opens on Wednesday, August 3.
Investors will likely approach 3D Systems’ report with more caution than optimism. Last quarter, the company missed Wall Street consensus estimates for revenue and profit. The report broke a streak of at least four consecutive quarters in which both top and bottom results exceeded analysts’ expectations.
In addition, investors are increasingly concerned that the Federal Reserve’s tight monetary policy aimed at tackling high inflation could push the US economy into a recession.
That said, long-term investors should continue to focus on 3D Systems’ performance given the factors within its control. Eventually, the macroeconomic environment will improve and the stock market will rebound.
Here’s what to watch for in 3D Systems’ upcoming second-quarter earnings report.
3D Systems key figures
Below are the company’s results for the prior year quarter and Wall Street estimates to use as benchmarks.
|Metric||Q2 2021 result||Wall Street consensus estimate for Q2 2022||Wall Street Projected Change (YOY)|
|Revenue||$162.6 million||$146.8 million||(9.7%)|
|Adjusted earnings per share (EPS)||$0.12||$0.00||The result should be balanced, whereas it was positive a year ago.|
Revenue is expected to decline as 3D Systems has sold some non-core assets over the past year. Such a decline in year-over-year revenue will also generally hurt the comparison of results.
Although the disposal of non-core assets had negative short-term effects, it was a good decision from a long-term perspective.
For context, 3D Systems’ first-quarter revenue fell 9% year-over-year to $133 million, missing the $134.2 million the Street had forecast. Excluding the impact of divestments, however, revenues increased 10%. Adjusted for disposals, sales in the industrial and healthcare segments increased by 16% and 4.6% respectively.
Adjusted net loss for the last quarter was $7.2 million, or $0.06 per share, compared to adjusted net earnings of $0.17 per share in the same period a year earlier. This result was below the $0.00 (breakeven point) that analysts had expected.
Any notable change in the company’s forecast for 2022 will likely move the stock.
For the year, 3D Systems’ current outlook is in the range of $580 million to $625 million, which would equate to about a 6% contraction to a 2% year-over-year growth. ‘other. These figures reflect the company’s disposal of non-core assets.
Management did not provide earnings guidance. However, he said he expects adjusted gross margin between 40% and 43% and adjusted operating expenses between $235 million and $250 million. In 2021, those numbers were 43% and $214.7 million, respectively.