Manufacturing services provider Proto Labs (NYSE:PRLB) will be reporting results this Friday before the bell. Here’s what to expect.
Proto Labs beat analysts’ revenue expectations last quarter, reporting revenues of $139.3 million, up 10.4% year on year. It was an exceptional quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Is Proto Labs a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Proto Labs’s revenue to grow 6.7% year on year, in line with the 7.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Proto Labs rarely misses Wall Street’s revenue estimates.
Looking at Proto Labs’s peers in the industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 24.5%, beating analysts’ expectations by 6%, and Stanley Black & Decker reported flat revenue, in line with consensus estimates. GE Aerospace traded down 3.2% following the results.
Read our full analysis of GE Aerospace’s results here and Stanley Black & Decker’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the industrial machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 8.1% on average over the last month. Proto Labs is down 12.4% during the same time and is heading into earnings with an average analyst price target of $88 (compared to the current share price of $71.38).
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