3D Systems (DDD) Earnings Preview: Navigating Revenue Challenges and EPS Improvement Hopes
2min read 3D Systems (DDD) Reports Q2 2025 Earnings Tomorrow: Can the Company Defy Its Track Record?
Investors in 3D Systems (DDD) are set to receive a critical update as the company reports Q2 2025 earnings on May 12, 2025. With the stock hovering near its 52-week lows amid declining revenue and a history of earnings misses, tomorrow’s results will test whether the company’s recent operational adjustments can stabilize its financial trajectory.
Revenue Outlook: Headwinds Persist
Analysts project Q2 2025 revenue of $103.92 million, a -8.24% year-over-year decline compared to Q2 2024’s $113.25 million. This marks the third consecutive quarter of declining revenue, with the company’s struggles tied to weak demand in key markets like industrial manufacturing and healthcare. The consensus estimate ranges from $102.6 million to $105.9 million, suggesting limited optimism.
The broader annual picture is equally challenging. Full-year 2025 revenue is expected to fall to $424.18 million, down from $440.12 million in 2024. This decline underscores the difficulty 3D Systems faces in expanding its addressable market while competitors like Stratasys (SSYS) and HP (HPQ) push for greater market share.
EPS: A Fragile Improvement Amid Persistent Misses
The company’s bottom line offers a glimmer of hope, albeit fragile. Analysts estimate an EPS of -$0.11 for Q2 2025, a 19.64% improvement from the -$0.14 reported in Q2 2024. However, this figure still represents a loss, and the company has missed EPS estimates in all four prior quarters, including a devastating -72.73% surprise in Q4 2024 (actual EPS of -$0.19 vs. the -$0.11 estimate).
The Zacks Earnings ESP model assigns a +36% likelihood of a beat, citing upward revisions to its Most Accurate Estimate. Yet this optimism is tempered by the company’s Zacks Rank #3 (“Hold”), reflecting lingering concerns about its ability to execute. Full-year 2025 EPS is projected at -$0.40, an improvement from 2024’s -$0.62, with 2026 estimates at -$0.17, signaling potential stabilization.
Historical Context: A Pattern of Misses and Volatility
3D Systems’ stock has historically reacted violently to earnings disappointments. For instance, shares plummeted -21% in after-hours trading following the Q4 2024 miss, as investors grew weary of recurring underperformance. The May 12 report will face heightened scrutiny, with the company’s May 13 conference call critical for addressing concerns about:
- Top-line contraction: Can management justify the revenue decline as temporary?
- Cost controls: Have margin improvements offset falling sales?
- Strategic priorities: What progress has been made in high-margin segments like aerospace or dental solutions?
Investor Takeaways and Risks
While the consensus EPS estimate reflects modest improvement, the stock’s trajectory hinges on execution. A beat could spark a short-covering rally, especially if management provides clarity on long-term cost reductions or new product pipelines. However, another miss would likely amplify calls for leadership changes or strategic shifts.
Conclusion: Caution Remains the Watchword
The stakes for 3D Systems’ Q2 report are high. With a 36% probability of an EPS beat and a track record of volatility, investors must weigh the potential for a short-term bounce against the company’s unresolved structural issues. The declining revenue trend and history of missed estimates suggest that even a modest beat may not suffice to sustain gains without meaningful business updates.
The 2026 EPS estimate of -$0.17 hints at stabilization, but until 3D Systems demonstrates consistent top-line growth or margin expansion, the stock will remain a speculative play. Tomorrow’s results are a critical litmus test—not just for this quarter, but for whether the company can regain investor confidence in its long-term viability.
Final Note: Monitor the May 13 conference call for clues on Q3 guidance and strategic priorities. For traders, consider setting tight stops given the stock’s historical post-earnings volatility.
