Analyst Estimates: Here's What Brokers Think Of 3D Systems Corporation (NYSE:DDD) After Its Yearly Report

3D Systems Corporation (NYSE:DDD) missed earnings with its latest yearly results, disappointing overly-optimistic forecasters. Revenues missed expectations somewhat, coming in at US$488m, but statutory earnings fell catastrophically short, with a loss of US$2.85 some 360% larger than what the analysts had predicted. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for 3D Systems

Taking into account the latest results, 3D Systems' six analysts currently expect revenues in 2024 to be US$488.8m, approximately in line with the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 92% to US$0.23. Before this latest report, the consensus had been expecting revenues of US$508.4m and US$0.11 per share in losses. So it's pretty clear the analysts have mixed opinions on 3D Systems after this update; revenues were downgraded and per-share losses expected to increase.

The average price target was broadly unchanged at US$5.74, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values 3D Systems at US$8.25 per share, while the most bearish prices it at US$4.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's also worth noting that the years of declining revenue look to have come to an end, with the forecast stauing flat to the end of 2024. Historically, 3D Systems' top line has shrunk approximately 5.4% annually over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.2% annually. Although 3D Systems' revenues are expected to improve, it seems that it is still expected to grow slower than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at 3D Systems. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on 3D Systems. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple 3D Systems analysts - going out to 2025, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for 3D Systems you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.