3D Systems Corporation saw a sharp decline, falling 20.7% to $2.02. This drop came after the company reported quarterly losses of 21 cents per share, missing the analyst consensus estimate of losses of 14 cents per share. Additionally, the company’s quarterly sales of $94.54 million fell short of the anticipated $99.46 million.
Over the last four quarters, the company has failed to surpass consensus EPS estimates. For the quarter ending March 2025, 3D Systems, which operates within the Zacks Commercial Printing industry, posted revenues of $94.54 million, missing the Zacks Consensus Estimate by 3.91%. This is a decline from $102.91 million in revenue reported in the same quarter last year.
The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock’s immediate price movement will largely depend on management’s comments during the earnings call. Since the beginning of the year, 3D Systems’ shares have declined about 27.7%, compared to the S&P 500’s decrease of 3.8%.
Given 3D Systems’ underperformance this year, investors are keenly watching for what lies ahead. One reliable measure to address this is the company’s earnings outlook. This not only includes current consensus earnings expectations for the upcoming quarters, but also recent changes in these expectations.
Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions themselves or use a rating tool like the Zacks Rank, which has a proven track record in leveraging earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for 3D Systems is mixed.
While the magnitude and direction of estimate revisions could change following the company’s earnings report, the current status translates into a Zacks Rank #3 (Hold). This suggests the shares are expected to perform in line with the market in the immediate future. Weiss Ratings recently reaffirmed its sell (D-) rating on shares of 3D Systems Corporation (DDD).
Earnings miss impacts 3D Systems’ stock
This rating was issued in a report published on Saturday morning. Several other research analysts have also commented on DDD in recent months.
On May 8th, analysts upgraded 3D Systems from a “sell” rating to a “hold” rating. Similarly, Needham & Company LLC reiterated a “hold” rating on the shares on March 28th. However, Cantor Fitzgerald lowered its price target for 3D Systems from $5.75 to $5.00 while still setting an “overweight” rating for the stock.
Overall, four analysts currently rate the stock as a “hold” while two have issued a “buy” rating. The company has a consensus rating of “Hold” and an average price target of $3.67. Shares of 3D Systems traded down $0.68 during Friday’s trading session, closing at $1.87.
The company had a trading volume of 13,261,764 shares, compared to its average volume of 2,812,386. The stock’s recent price movements include a 50-day moving average of $2.21 and a 200-day moving average of $3.05. Over the past year, the stock has experienced a low of $1.71 and a high of $5.00.
Several large investors have recently adjusted their positions in 3D Systems. DZ BANK AG Deutsche Zentral-Genossenschaftsbank Frankfurt am Main increased its stake by 15.7% in the fourth quarter, now owning 16,779 shares valued at $55,000. Cetera Investment Advisers also increased its position by 2.3% during this period, now owning 127,106 shares worth $417,000.
Rhumbline Advisers lifted its holdings by 2.2%, bringing its total to 207,406 shares valued at $680,000. The Canada Pension Plan Investment Board notably boosted its holdings by 67.9%, now holding 14,100 shares worth $46,000. Impact Partnership Wealth LLC raised its stake by 31.3%, now owning 27,772 shares valued at $91,000.
Institutional investors currently own 64.49% of the stock.
Image Credits: Photo by Markus Winkler on Unsplash
Cameron is a highly regarded contributor in the rapidly evolving fields of artificial intelligence (AI) and machine learning. His articles delve into the theoretical underpinnings of AI, the practical applications of machine learning across industries, ethical considerations of autonomous systems, and the societal impacts of these disruptive technologies.
