ExOne Earnings Preview: Here's What's Happened Since Q4

ExOne Co (NASDAQ: XONE) is scheduled to report its first quarter results after Thursday's market close.

The Estimize crowd sourced community (based on nine estimates) is estimating the company will lose $0.36 per share on revenue of $7.95 million. This compares to the Wall Street consensus estimate calling for the company to lose $0.31 per share on revenue of $8.16 million.

Fourth-Quarter Review

ExOne reported its fourth-quarter results on March 16. The company reported a loss of $0.50 per share in the quarter while analysts were expecting a loss of $0.05. Revenue of $15.77 million also fell short of the $18.54 million analysts were expecting.

ExOne provided full-year fiscal 2015 guidance of revenue of $58 million to $66 million, which was in line with the $61.8 million analysts were projecting at the time. The company also guided its full-year gross margin to a range of 36 percent to 40 percent, also in line with the 38.2 percent analysts were projecting at the time.

Related Link: ExOne Earnings Preview: Will It Miss Estimates Again?

Despite the revenue and earnings miss, Sherri Scribner of Deutsche Bank commented that the company remains "well positioned" in heavy industrial applications. However, the analyst noted that shares will be range bound until the company can deliver more consistent sales growth and profitability.

Similarly, Ananda Baruah of Brean Capital commented that shares should remain "at bay" in the near-term. The analyst also noted that the "complexion" of both ExOne's transition and its stock potential has begun to shift in "meaningful ways," even though it is not reflected in the share price.

Baruah continued that ExOne's cost structure ramped "materially" in 2014 and should stabilize through 2015. In addition, if the company can execute on its revenue guidance through 2015, the company will have "strong momentum" heading into 2016, where it can put together a consistent year of accelerating revenue growth and material margin expansion.

Finally, Ben Hearnsberger of Stephens commented that the company's fourth-quarter results suggests management has positioned the company in terms of infrastructure, both in manufacturing and printing capacity as well as headcount.

Similar to the other analysts, Hearnsberger argued that shares of ExOne remains a "show-me" story, and risk remains around quarterly execution of high average selling price machine sales.

Related Link: Analyst Calls 3D Printing "Massive Clash Of Hype Vs. Reality"

Analyst Rating Changes Following Q4 Earnings

What's Happened Since Q4?

• On March 26, ExOne reported "material weakness" in a 10-k filing.
• At a Jefferies' 3D Printing Summit, ExOne's management team said that it is prepared to take necessary measures to achieve break-even EBITDA by 2016 with a focus on sales, research & development and execution.
• ExOne filed for a $150 million shelf on April 10.
• ExOne announced on May 11 it will delay its first quarter earnings release due to "unforeseen difficulties with ERP System." The company affirmed its full year 2015 outlook, but received notice from the Nasdaq Listing Qualifications Department that it is not in compliance with regulatory listing rules.

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