Proto Labs Earnings: Here’s Why the Stock is Falling Now

Proto Labs Inc. (NYSE:PRLB) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 5.97%.

Proto Labs Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 56.52% to $0.36 in the quarter versus EPS of $0.23 in the year-earlier quarter.

Revenue: Rose 32.55% to $39.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS income of $0.36 per share. By that measure, the company beat the mean analyst estimate of $0.35. It missed the average revenue estimate of $40.25 million.

Quoting Management: “This past quarter again demonstrates that product developers value our services. Businesses today compete globally and need to use technology to accelerate their new ideas to the market. As the world’s fastest provider of CNC and injection-molded parts using engineering-grade materials and real manufacturing processes, we are well-placed to benefit from this trend and make product developers more successful,” said Proto Labs’ President and CEO Brad Cleveland.

Key Stats (on next page)…

Revenue increased 6.41% from $37.31 million in the previous quarter. EPS increased 2.86% from $0.35 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.36 and has not changed. For the current year, the average estimate is a profit of $1.4, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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