3D Systems (DDD) Earnings Preview

3D printing stocks have had a huge run up in 2013 with 2 of the biggest movers in the space being DDD & XONE.  With DDD set to report earnings on Tuesday, look for a strong amount of volatility, especially after rising more than 6% on Monday.  The majority of analysts expect higher profits when the company reports its second quarter results with the consensus estimate calling for profit of 22 cents a share, a rise from 16 cents per share at the same time last year.   Revenue has improved in each of the last three quarters, jumping 22% in the first quarter 2013, 45% in the fourth quarter and 57% in the third quarter.  The majority of analysts (62%) rate 3D Systems as a buy. This compares favorably to the analyst ratings of its nearest seven competitors, which average 58% buys. From an options perspective, upside call options trading on Monday suggest some traders are positioning for further upside in the price of the underlying this week. More than 3,000 of the Aug 02 ’13 $50 strike calls had changed hands on DDD versus open interest of 1,169 contracts, with most of the volume purchased in the morning for an average premium of $2.00 each.

From an Ichimoku technical perspective, the setup is bullish with price, tenkan, kijun, chikou above the cloud and a bullish forming kumo future.

Key price levels:

All-time high- 51.94

Tenkan- 48.48

Kijun- 46.25

Cloud high- 45.50 

For further analysis, check out the CloudTrader Weekend Update 7/27/13 around the 8:45 mark.