3D Systems (DDD 1.01%) is slated to report its second-quarter 2022 results after the market close on Monday, Aug. 8. An analyst conference call is scheduled for the next day at 8:30 a.m. ET.
The 3D printing company's report will follow that of rival Stratasys, which plans to release its quarterly results before the market open on Wednesday, Aug. 3.
Investors will probably be approaching 3D Systems' report with more caution than optimism. Last quarter, the company missed Wall Street's consensus estimates for both revenue and earnings. That report broke a string of at least four consecutive quarters in which both the top and bottom lines exceeded analysts' expectations.
Moreover, investors are increasingly concerned that the Federal Reserve's tight monetary policy to tame high inflation could throw the U.S. economy into a recession.
All this said, long-term investors should continue to focus on how 3D Systems is performing given the factors within its control. Eventually the macroeconomic environment will improve and the stock market will come surging back.
Here's what to watch in 3D Systems' upcoming Q2 earnings report.
Image source: Getty Images.
3D Systems' key numbers
Below are the company's results from the year-ago quarter and Wall Street's estimates to use as benchmarks.
| Metric | Q2 2021 Result | Wall Street's Q2 2022 Consensus Estimate | Wall Street's Projected Change (YOY) |
|---|---|---|---|
| Revenue | $162.6 million | $146.8 million | (9.7%) |
| Adjusted earnings per share (EPS) | $0.12 | $0.00 | Result expected to be breakeven, compared with positive in the year-ago period. |
Data sources: 3D Systems and Yahoo! Finance. YOY = year over year.
Revenue is expected to decline because 3D Systems has sold off some noncore assets over the last year. Such a year-over-year drop in revenue will also usually hurt the bottom-line comparison.
While the divesting of noncore assets has had some short-term negatives, it was a good move from a long-term perspective.
For context, in the first quarter, 3D Systems' revenue fell 9% year over year to $133 million, missing the $134.2 million the Street had projected. Excluding the impact of divestitures, however, revenue increased 10%. Adjusted for divestitures, sales in the industrial and healthcare segments rose 16% and 4.6%, respectively.
Last quarter's adjusted net loss was $7.2 million, or $0.06 per share, compared with an adjusted net profit of $0.17 per share in the year-ago period. That result fell short of the $0.00 (breakeven) that analysts had expected.
Annual guidance
Any notable change in the company's 2022 guidance will probably move the stock.
For the year, 3D Systems' current outlook is for revenue in the range of $580 million to $625 million, which would equate to a contraction of about 6% to growth of 2% year over year. These numbers reflect the company's divestiture of noncore assets.
Management did not provide guidance for earnings. However, it did say that it expects adjusted gross margin between 40% and 43% and adjusted operating expenses between $235 million and $250 million. In 2021, these numbers were 43% and $214.7 million, respectively.
