3D Systems (DDD -2.00%) is slated to report its first-quarter 2022 results after the market close on Monday, May 9. An analyst conference call is scheduled for the next day at 8:30 a.m. ET.
Last year, the 3D printing company beat Wall Street's consensus estimates for both revenue and earnings in all four quarters. Moreover, three of the four earnings beats were large. In addition, its revenue guidance for full-year 2022, which it issued last quarter, was higher than analysts had been expecting.
While 3D Systems' turnaround efforts are solidly progressing, the company is still not profitable on the basis of generally accepted accounting principles (GAAP).
3D Systems stock is down 25.6% over the one-year period through April 19. This performance trails that of the broader market, with the S&P 500 and tech-heavy Nasdaq Composite returning 8.7% and negative 1.5%, respectively, over this period. For additional context, fellow pure-play 3D printing stocks Stratasys and Desktop Metal are up 1.8% and down 65.4%, respectively, over the last year.
Here's what to watch in 3D Systems' Q1 report.
3D Systems' key numbers
Below are the company's results from the year-ago quarter and Wall Street's consensus estimates to use as benchmarks.
|Metric||Q1 2021 Result||Wall Street's Q1 2022 Consensus Estimate||Wall Street's Projected Year-Over-Year Change|
|Revenue||$146.1 million||$134.2 million||(8.1%)|
|Adjusted earnings per share (EPS)||$0.17||$0.00||(100%)|
The year-over-year revenue decline is expected because 3D Systems has sold off some noncore assets over the last year. The bottom line is expected to be hurt in part because of the revenue decline. Moreover, the company is facing a tough year-over-year earnings comparable.
For context, in the fourth quarter of 2021, 3D Systems' revenue declined 13% year over year to $150.9 million. However, excluding the impact of divestitures, revenue increased 13%. The top-line result sped by the $144.2 million Wall Street consensus estimate. By segment, healthcare and industrial sales declined 13% and 12%, respectively. Adjusted for divestitures, their sales increased 5.1% and 22.1%, respectively.
Last quarter's adjusted net income was $11.5 million, or $0.09 per share, which was flat with the year-ago period. That result crushed the adjusted EPS of $0.03 that analysts had projected.
It doesn't seem likely that management will provide quarterly guidance. Last quarter, it released its outlook for full-year 2022. Any notable change in this outlook will probably move the stock. That said, management probably won't tweak its annual guidance this soon into the year.
For 2022, the company guided for revenue in the range of $570 million to $630 million. This represents a contraction of about 7% to growth of 2% year over year. These numbers reflect the company's divestiture of noncore assets in 2021.
Also, for the year, the company expects adjusted gross margin between 40% and 44% and adjusted operating expenses between $225 million and $250 million. In 2021, these metrics were 43% and $214.7 million, respectively.
Management did not provide earnings guidance.