PRLB - Proto Labs stock sinks 24% to decade-low as guidance widely misses estimates

Proto Labs ( NYSE: PRLB ) stock sank 24% to its lowest in over a decade on Friday after the digital manufacturing company provided Q4 guidance that widely missed estimates.

The firm expects Q4 adj. EPS of $0.18-$0.26 vs. consensus estimate of $0.43.

Q4 revenue is expected to be $107M-$115M vs. consensus estimate of $126.02M.

Proto Labs ( PRLB ) projected foreign currency to have an ~$4.2M unfavorable impact on Q4 revenue, while closure of Japan operations is expected to have an ~$3.5M adverse impact.

The company reported Q3 adj. EPS of $0.40 vs. $0.35, driven by Hubs gross margin improvement and a lower effective tax rate.

But revenue fell 2.9% Y/Y to $121.72M, hurt by continued softening of its biggest business - injection molding.

Injection molding revenue fell 15.2% to $48.9M.

Protolabs ( PRLB ) served 23,816 unique product developers during the Q3.

"Our financial position remains strong as we produced $20.5M in cash from operations in the quarter. As we monitor the economy, we are tightening our cost controls," said CFO Dan Schumacher.

Shares of Proto Labs ( PRLB ) dropped ~49% YTD.

Proto Labs ( PRLB ) is at high risk of performing badly due to negative EPS revisions and decelerating momentum, according to SA Quant rating system .

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