PRLB - Why Proto Labs' Stock Plunged 31.1% on Friday
Shares of rapid manufacturer Proto Labs (NYSE: PRLB) fell as much as 31.8% in trading on Friday after the company reported quarterly earnings. Shares closed the day down 31.1%.
Third-quarter revenue fell 2.9% to $121.7 million and net income fell from $4.8 million a year ago to $4 million, or $0.14 per share. Analysts expected revenue to be flat, so that was a slight disappointment, but adjusted earnings per share of $0.40 beat estimates by $0.02.
On the conference call , management discussed soft demand from end customers and manufacturers reducing inventory buildup, which is why revenue was down. They don't expect the decline to end now, with fourth-quarter 2022 guidance for $107 million to $115 million in revenue and non-GAAP earnings of $0.18 to $0.26 per share, well below the $0.43 that analysts expected.
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Why Proto Labs' Stock Plunged 31.1% on Friday