Yahoo Finance Here's What Analysts Are Forecasting For 3D Systems Corporation After Its Full-Year Results
One of the biggest stories of last week was how 3D Systems Corporation (NYSE:DDD) shares plunged 23% in the week since its latest yearly results, closing yesterday at US$9.15. 3D Systems reported revenues of US$629m, in line with expectations, but it unfortunately also reported (statutory) losses of US$0.61 per share, which were slightly larger than expected. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what analysts' statutory forecasts suggest is in store for next year.
View our latest analysis for 3D Systems
After the latest results, the eight analysts covering 3D Systems are now predicting revenues of US$643.7m in 2020. If met, this would reflect a reasonable 2.3% improvement in sales compared to the last 12 months. Statutory losses are forecast to balloon 56% to US$0.27 per share. Yet prior to the latest earnings, analysts had been forecasting revenues of US$649.3m and losses of US$0.29 per share in 2020. Although the revenue estimates have not really changed, we can see there's been a slight bump in earnings per share expectations, suggesting that analysts have become more bullish after the latest result.
There's been no major changes to the consensus price target of US$10.36, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values 3D Systems at US$14.00 per share, while the most bearish prices it at US$7.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
It can also be useful to step back and take a broader view of how analyst forecasts compare to 3D Systems's performance in recent years. One thing stands out from these estimates, which is that analysts are forecasting 3D Systems to grow faster in the future than it has in the past, with revenues expected to grow 2.3%. If achieved, this would be a much better result than the 0.2% annual decline over the past five years. Compare this against analyst estimates for the wider market, which suggest that (in aggregate) market revenues are expected to grow 6.7% next year. Although 3D Systems's revenues are expected to improve, it seems that analysts are still bearish on the business, forecasting it to grow slower than the wider market.
The Bottom Line
The most important thing to take away is that analysts increased their loss per share estimates for next year. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that 3D Systems's revenues are expected to perform worse than the wider market. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple 3D Systems analysts - going out to 2024, and you can see them free on our platform here.
We also provide an overview of the 3D Systems Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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