Can XMTR sustain its EPS growth into 2025?
4/12/2025 11:39am
**Xometry (XMTR) is poised to sustain its EPS growth into 2025**, based on several key indicators:
1. **Consistent Revenue Growth**: Xometry has demonstrated a strong track record of revenue growth, with a 19.5% year-over-year increase in Q2 2024 revenue, surpassing the consensus estimate. This growth momentum is a positive signal for future earnings potential.
2. **Positive Analyst Ratings and Target Increases**: The consensus rating for XMTR is a "Strong Buy" with an average price target of $33.5, indicating analysts' confidence in the company's future performance. Goldman Sachs recently raised its price target to $30, maintaining a "Buy" rating, which further supports the positive outlook.
3. **Strategic Investments and Market Position**: Xometry's strategic investments in AI-powered technologies and its leadership in the 3D printing and additive manufacturing industry are expected to drive long-term growth. The company's strong market position and innovative solutions suggest a favorable outlook for sustaining EPS growth.
4. **Financial Performance and Guidance**: Xometry's Q4 2024 earnings report showed a record revenue of $149 million and a record gross profit of $59 million, marking significant financial achievements. The company has provided guidance for Q1 2025, forecasting an acceleration in revenue growth, which is a positive indicator for EPS growth.
5. **Insider Confidence**: Recent insider transactions, such as the sale of company stock by CFO Miln James and CEO Randolph Altschuler, were conducted as part of pre-arranged trading plans to cover tax obligations. These transactions do not necessarily reflect a lack of confidence in the company's future performance but rather a strategic financial decision.
In conclusion, Xometry's strong revenue growth, positive analyst ratings, strategic investments, and financial performance indicators suggest that the company is well-positioned to sustain its EPS growth into 2025.