William Blair Lowers Q2 2023 Earnings Per Share Estimates for Velo3D,
May 9, 2023
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VELO3D ($NYSE:VLD), Inc. is a leading provider of Metal Additive Manufacturing (AM) solutions for the industrial and aerospace sectors. The company is renowned for its innovative AM systems, software solutions, materials, and services. It has become a major player in the 3D printing industry due to its cutting-edge technologies. Recently, William Blair’s research analysts have revised their Q2 2023 EPS predictions for Velo3D, Inc. in a research note. This revision indicates that the company’s Q2 earnings are likely to be lower than previously expected. This news may cause the stock price of Velo3D, Inc. to dip in the near future, as investors will interpret this as a sign of declining performance.
However, the company’s long-term growth prospects are still largely unaffected. Velo3D is actively working on developing new AM solutions that can revolutionize existing industrial and aerospace processes. If successful, these endeavors could lead to a surge in profitability and a rise in the stock price in the future. Thus, investors should assess the current situation carefully before making any decisions.
Earnings
The earning report of FY2023 Q1 as of March 31 2023, showed that VELO3D earned a total revenue of 26.81M USD, but unfortunately lost 36.2M USD in net income. Comparing to the previous year, it was a 119.4% increase in total revenue.The growth of VELO3D’s total revenue from 1.17M USD to 26.81M USD in the past 3 years is impressive.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Velo3d. More…
| Total Revenues | Net Income | Net Margin |
| 95.35 | 39.16 | -103.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Velo3d. More…
| Operations | Investing | Financing |
| -124.69 | 40.65 | 16.74 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Velo3d. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 213.73 | 91.79 | 0.63 |
Key Ratios Snapshot
Some of the financial key ratios for Velo3d are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 41.5% |
| FCF Margin | ROE | ROA |
| -145.6% | 18.8% | 11.6% |
Market Price
On Monday, it was reported that William Blair downgraded their estimates on VELO3D Inc’s second quarter of 2023 earnings per share. The downgrade had no effect on the company’s stock, as the stock opened and closed at $2.1, a 0.5% increase from the last closing price of 2.1. This is good news for VELO3D, as it means that the market still believes in the company’s long-term potential and growth trajectory. Despite the lowered estimates, investors are still confident in the company’s ability to deliver strong results and a favorable outlook for the future. Live Quote…
Analysis
As GoodWhale, we have conducted an analysis of VELO3D‘s wellbeing. According to our Star Chart, VELO3D is classified as a ‘rhino’, which we conclude has achieved moderate revenue or earnings growth. Therefore, this type of company may be attractive to investors who are looking for more stable growth and are willing to wait for higher returns. We give VELO3D a health score of 7/10, noting that its financial health is strong due to its cashflows and debt levels. This suggests that VELO3D is capable of paying off debt and funding future operations. Additionally, VELO3D is strong in terms of assets, medium in terms of growth, but weak in terms of dividends and profitability. More…
Peers
The company competes with 3DX Industries Inc, Markforged Holding Corp, and Cognex Corp.
– 3DX Industries Inc ($OTCPK:DDDX)
3DX Industries Inc is a publicly traded company with a market capitalization of $631,910 as of March 2021. The company has a return on equity of 16.98% as of the same date. 3DX Industries Inc is engaged in the business of providing 3D printing and related services to the aerospace, defense, and other industries.
– Markforged Holding Corp ($NYSE:MKFG)
Markforged Holding Corp is a 3D printing company that produces machines that print metal and carbon fiber. The company has a market cap of 425.61M as of 2022 and a Return on Equity of 8.01%. Markforged was founded in 2013 by Greg Mark and is headquartered in Watertown, Massachusetts.
– Cognex Corp ($NASDAQ:CGNX)
Cognex Corp is a leading provider of industrial machine vision systems. Their products are used in a variety of industries, including automotive, electronics, food and beverage, and pharmaceuticals. Cognex’s market cap is 8.17B as of 2022, and their ROE is 14.01%. The company’s products are used to automate tasks and improve productivity.
Summary
Investment analysts at William Blair have lowered their earnings per share estimates for Velo3D in the second quarter of 2023. Investors should consider the impact of this downgrade on their portfolios when making decisions about investing in the company. Analysts have noted that the current market conditions may have an adverse effect on Velo3D’s profitability, and its future outlook is uncertain.
Investors should also consider any potential risks associated with the company, such as its reliance on large orders from a single customer, or its limited product offerings. Overall, investors should make careful decisions when considering an investment in Velo3D, and perform their own due diligence before committing to any investments.
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