3D Systems Corporation (NYSE:DDD) reports earnings tomorrow, and the report never fails to garner a lot of attention. Wall Street will be expecting fourth-quarter earnings of $0.20 in earnings per share non-GAAP and $0.12 EPS GAAP on revenue of $154.96 million. The company's guidance will need to be around $700 million for 2014 with $0.82 non-GAAP EPS or $0.48 EPS GAAP.
With the tremendous amount of noise in the media about additive manufacturing stocks, investors need to be aware of the most important points to watch for when the announcement breaks.
In this video, Motley Fool industrials analyst Blake Bos sifts out the eight most critical, salient points to be alert for as an investor in 3D Systems Corp. He discusses the level of organic growth he'd like to see the company hit, and he'll also be watching to see that the company is keeping up a healthy mix of sales in its three spaces, printers, materials, and services. Sales of printers outpace those of the higher-margin materials used to print, which may be an indicator that consumers aren't using the printers as much as expected, so Blake would like to see materials sales catch back up.
He'll also be listening for key comments from the conference call on the company's acquisition strategy and consumer printer sales, as well as what it will be focusing its R&D spending on, and any comments about reseller inventory and whether resellers and distributors are currently experiencing any shortages or surpluses.
Finally, Blake will be looking at dilution, to see if the company's share count has increased from its 103.3 million shares in Q3, and he'll be keeping an ear open for any developments in the company's industrial segment. After its purchase of Phenix Systems, he's interested in how the company's ProX line of printers is performing, as it is the company's venture into printing metal.
With 3D Systems Corp. having just recently updated guidance in early February, Blake's not expecting any surprises here, but he does see three possible catalysts from the upcoming report that shares could react to.
This company makes 3-D printing growth look pathetic
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Blake Bos has no position in any stocks mentioned. The Motley Fool recommends 3D Systems. The Motley Fool owns shares of 3D Systems. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.