Proto Labs (NYSE:PRLB) stock dropped more than 18% after the digital manufacturing service provider reported third-quarter earnings that missed Wall Street’s expectations.
Maple Plain, Minnesota–based Proto Labs this morning reported earnings of $4.8 million (or 17¢ per share) off sales of $125.3 million. That’s a 67% decrease from Q3 2020’s earnings of $14.7 million (55¢ per share) off sales of $107.5 million.
Adjusted to exclude one-time items, earnings per share were 35¢, or 8¢ below Wall Street’s consensus forecast, where analysts were looking for adjusted EPS of 43¢ on sales of $127.3 million.
“We achieved record revenue in the third quarter amidst a difficult backdrop of global supply chain issues and labor and materials constraints,” Proto Labs resident and CEO Rob Bodor said in a news release. “During the quarter, we also received external recognition of our best-in-class digital manufacturing capabilities as the World Economic Forum announced our induction into their Global Lighthouse Network, recognizing our industry-leading efforts to implement Fourth Industrial Revolution technologies. We continue to focus on the long-term market opportunities and invest in the business to serve the evolving needs of our customers.”
Proto Labs— which also does business as Protolabs — serves the medtech industry and a host of others.
“Our earnings in the third quarter were impacted by post-pandemic-related cost inflation, as well as continued investments in our systems and product offering in order to maintain our position as the largest and fastest provider of digital manufacturing services,” CFO John Way said in the news release. “We have a very strong balance sheet with $84 million in cash and investments and no debt, allowing us to continue to invest in future growth and return capital to our shareholders.”
Investors reacted by sending PRLB down more than 18% to $60.26 apiece by midday trading.