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Proto Labs (PRLB) Lags on Q1 Earnings and Revenue

Proto Labs, Inc. (PRLB) specializes in manufacturing custom parts for prototyping and short-run production. The company has a strong product-line, with new introductions likely to capture a greater market share. Demands for its services are high among product developers using three-dimensional computer-aided design to develop products across a diverse range of end-markets. It currently has a $2.1 billion market capitalization.

However, demand for prototypes is largely influenced by economic activities of the countries served by the company. In first-quarter 2016, weak commodity prices, unfavourable foreign currency movements, struggling Chinese economy and political unrest in some emerging nations continue to act as prime headwinds. Such negatives are likely to influence demand for Proto Labs’ custom parts. Investors are eagerly waiting for the company’s latest earnings report.

Proto Labs’ earnings track record has been mixed in the past few quarters. The company posted better-than-expected results in two out of four trailing quarters. Average earnings surprise was a positive 1.20%.
 
Currently, PRLB has a Zacks Rank #3 (Hold), but that could definitely change after the release of its upcoming earnings report. We have highlighted some of the key stats from this just-revealed announcement below:
 
Earnings:  Proto Labs’ first-quarter 2016 non-GAAP earnings came in at 44 cents per share or roughly 40 cents per share including stock-based compensation expense. The bottom line result of 40 cents was below the Zacks Consensus Estimate of 42 cents per share.

Revenue: Revenues missed. Proto Labs generated revenues of $72.6 million, below the Zacks Consensus Estimate of $74 million.
    
Key Stats to Note: Revenue generation from the Fineline assets increased 100% over the year-ago tally. Also, the company recorded 20% increase in number of unique product developers and engineers served.

Stock Price: Proto Labs shares were up 1.03% ahead of the report while no movement has been recorded in the pre-market trading session.
 
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