Investing

Earnings Previews: 3D Systems, Nvidia, Best Buy, Li Auto, Moderna, Plug Power

Equities took something of a beating Tuesday morning, with Home Depot down around 4% on a weak outlook and Palo Alto Networks down about 1% on a similarly dim view of the current quarter.

In our earnings preview yesterday, we looked at electric truck drive train maker Hyliion, independent oil producer Range Resources and mobile payments company Square. All three report after markets close on Tuesday. Our preview also covered three companies reporting Wednesday morning: Lowe’s, TJX Companies and Vertiv.


Looking ahead to Wednesday afternoon, here are previews of 3D Systems and Nvidia, both of which are scheduled to report quarterly results. For Thursday morning, we’ve previewed four more firms we expect to hear from: Best Buy, Li Auto, Moderna and Plug Power.

3D Systems

3D Systems Corp. (NYSE: DDD) is on deck to report results after Wednesday’s closing bell. The company has been publicly traded for more than 30 years. Since moving to the New York Stock Exchange in May of 2011, the stock has added more than 200% to its share price. At its peak in January 2014, the shares traded up just over $99. In 2020, the stock added 20%, but shares are up more than 240% so far in 2021 and trade around $35.50. That’s about 45% below its peak for the year to date.

The source of the 2021 joy is likely the company’s announcement that 3D Systems is consolidating its operations in South Carolina with the company’s headquarters in an effort to reduce costs and expand margins. That was all part of the company’s restructuring plan announced last year, and shares shot up on expectations that 3D Systems would report a profit in its fourth quarter.

Analysts now expect quarterly earnings per share (EPS) of $0.10 on revenue of $168.5 million, a 100% EPS increase, and a revenue boost of 2.4% year over year. For the full fiscal year, analysts expect a net loss per share of $0.01 on sales of $550.4 million. The annual loss is seven cents better than the loss posted in 2019, but full-year sales are expected to fall by more than 12%.

At the current trading price, the stock already trades above its consensus target of $20.50. Based on the current price, shares trade at around 112 times expected 2021 EPS and about 78 times expected 2022 EPS.

Nvidia

This was one of 2020’s major stories. The Nvidia Corp. (NASDAQ: NVDA) share price more than doubled in the year but has gained less than 6% so far in 2021, as the tech stocks continue slipping from highs posted last week. The company likely will see a boost from rising bitcoin prices in the current quarter, but for the quarter just ended, sales of its gaming processors most likely will have contributed to the company’s earnings.