3D Systems (DDD Quick QuoteDDD - Free Report) is set to report its fourth-quarter 2023 results on Feb 28.

The Zacks Consensus Estimate for the bottom line is pegged at break-even, unchanged over the past 30 days. 3D Systems reported a loss of 6 cents per share in the year-ago quarter.

The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing in one and matching in the remaining quarter, the average surprise being 32.29%.

3D Systems Corporation Price and EPS Surprise

3D Systems Corporation price-eps-surprise | 3D Systems Corporation Quote

Let’s see how things have shaped up before this announcement.

Factors to Note

3D Systems’ fourth-quarter 2023 results are expected to have suffered from a challenging industrial market. A tough macroeconomic environment, including raging inflation, is expected to have negatively impacted top-line growth.

However, DDD’s innovative portfolio that addresses the needs of a wide variety of industrial markets, including semiconductor equipment, aerospace and defense, automotive as well as electric vehicles, has been a catalyst.

Gross margin is likely to have continued expansion thanks to improved operational efficiencies. However, higher research & development expenses are expected to have hurt the bottom line.

3D Systems also suffers from customer concentration in the dentistry market, which is almost half of its healthcare business. Moreover, raging inflation is expected to have hurt demand for aligners, which didn’t bode well for top-line growth in the to-be-reported quarter.

What Our Model Indicates

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

3D Systems has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Semrush (SEMR Quick QuoteSEMR - Free Report) has an Earnings ESP of +23.08% and currently has a Zacks Rank #2. You can find the complete list of today’s Zacks #1 Rank stocks here.

Semrush is set to announce fourth-quarter 2023 results on Mar 4. SEMR shares have gained 54.2% year to date.

VTEX (VTEX Quick QuoteVTEX - Free Report) has an Earnings ESP of +500.01% and a Zacks Rank #2 at present.

VTEX is set to announce fourth-quarter 2023 results on Feb 27. VTEX’s shares have returned 46.6% year to date.

SentinelOne (S Quick QuoteS - Free Report) currently has an Earnings ESP of +16.30% and a Zacks Rank #3.

SentinelOne is set to announce fourth-quarter fiscal 2024 results on Mar 13. S shares have returned 31.1% year to date.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.