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3D printing company Desktop Metal (NYSE:DM) will be reporting earnings tomorrow before market hours. Here's what to expect.
Desktop Metal met analysts' revenue expectations last quarter, reporting revenues of $40.6 million, down 1.7% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts' earnings estimates and optimistic EBITDA guidance for the full year.
Is Desktop Metal a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Desktop Metal's revenue to decline 14.6% year on year to $45.5 million, a further deceleration from the 7.6% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.39 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Desktop Metal has missed Wall Street's revenue estimates four times over the last two years.
Looking at Desktop Metal's peers in the industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Flowserve delivered year-on-year revenue growth of 7.1%, beating analysts' expectations by 2.4%, and Crane Company reported revenues up 14%, topping estimates by 3.9%.
Read our full analysis of Flowserve's results here and Crane Company's results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 10.2% on average over the last month. Desktop Metal is up 19.9% during the same time and is heading into earnings with an average analyst price target of $5.3 (compared to the current share price of $4.88).
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