3D Systems Corporation (NYSE:DDD) will release its next earnings report on Feb. 28, and analysts don’t expect any surprises, mainly because the company has been keeping investors in the loop. The company recently issued guidance for this year which was in line with expectations, although it moderated expectations a bit because of increased investment activities which will put a weight on its operating expectations. Nonetheless, JPMorgan analyst Paul Coster and his team believe the company is executing well.

3D Systems Corporation

What to expect in 3D Systems’ earnings

His estimates are in line with 3D Systems Corporation (NYSE:DDD)’s earnings preannouncement. They are expecting to see fourth quarter earnings per share of 19 cents on $154.6 million in revenue. This is in line with the company’s implied guidance of between 17 cents and 21 cents per share on revenue of about $155 million. Wall Street is expecting earnings to be a little higher—at 23 cents per share. The JPMorgan team Is expecting operating margins of 14.8%.

For the full year, they are expecting 3D Systems Corporation (NYSE:DDD) to report earnings of 85 cents per share and revenue of $685.6 million. That would be in line with the guidance of between 73 cents and 85 cents per share and revenue of $680 million to $720 million.

Valuing 3D Systems

JPMorgan analysts continue to rate 3D Systems Corporation (NYSE:DDD) as Neutral because they believe it is fully valued. They note that it trades at a premium to Stratasys, Ltd. (NASDAQ:SSYS). However, they say 3D’s diversification does provide the company with what is arguably a bigger addressable market. In addition, 3D Systems is “relatively less” focused on the high-end margins of the professional market, which makes the execution of its strategy more challenging.

Overall, they believe 3D Systems Corporation (NYSE:DDD) has done a solid job on executing and capitalizing on the diverse market opportunities it has. They say this justifies a premium multiple, although the company’s margins have been lagging behind expectations. They believe any possible revenue upside may be offset by a slight disappointment in the company’s “end-state business model.”

Their price target for 3D Systems Corporation (NYSE:DDD) is $54 a share. Although shares are significantly higher than their price target, they don’t recommend selling shares already hold. They would view a pullback as a long-term buying opportunity, however.