Yahoo Finance Q1 Earnings Outperformers: Proto Labs (NYSE:PRLB) And The Rest Of The Custom Parts Manufacturing Stocks
Wrapping up Q1 earnings, we look at the numbers and key takeaways for the custom parts manufacturing stocks, including Proto Labs (NYSE:PRLB) and its peers.
Onshoring and inventory management–themes that grew in focus after COVID wreaked havoc on global supply chains–are tailwinds for companies that combine economies of scale with reliable service. Many in the space have adopted 3D printing to efficiently address the need for bespoke parts and components, but all companies are still at the whim of economic cycles. For example, consumer spending and interest rates can greatly impact the industrial production that drives demand for these companies’ offerings.
The 4 custom parts manufacturing stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 0.7%. while next quarter's revenue guidance was 1.8% below consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and custom parts manufacturing stocks have had a rough stretch, with share prices down 11% on average since the previous earnings results.
Proto Labs (NYSE:PRLB)
Pioneering the concept of online quoting and manufacturing for custom prototypes and low-volume production parts, Proto Labs (NYSE:PRLB) offers injection molding, 3D printing, and sheet metal fabrication for manufacturers in various industries.
Proto Labs reported revenues of $127.9 million, up 1.6% year on year, exceeding analysts' expectations by 2.6%. Overall, it was a decent quarter for the company with an impressive beat of analysts' 3D Printing revenue estimates but a miss of analysts' earnings estimates.
"We demonstrated strong financial and operational results in the first quarter," said Rob Bodor, President and Chief Executive Officer.
Proto Labs achieved the biggest analyst estimates beat and fastest revenue growth of the whole group. The stock is up 4% since reporting and currently trades at $32.42.
Is now the time to buy Proto Labs? Access our full analysis of the earnings results here, it's free.
Best Q1: Desktop Metal (NYSE:DM)
Originating from a research lab at MIT, Desktop Metal (NYSE:DM) offers 3D printers, production materials, and software to many industries.
Desktop Metal reported revenues of $40.6 million, down 1.7% year on year, in line with analysts' expectations. It was an exceptional quarter for the company with an impressive beat of analysts' earnings estimates and optimistic EBITDA guidance for the full year.
Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 40.5% since reporting. It currently trades at $5.02.
Is now the time to buy Desktop Metal? Access our full analysis of the earnings results here, it's free.
Weakest Q1: Markforged (NYSE:MKFG)
Producing the first 3D printers capable of printing continuous carbon fiber reinforcement, Markforged (NYSE:MKFG) offers 3D printers and softwares to manufacturers of various industries. .
Markforged reported revenues of $20.55 million, down 14.7% year on year, in line with analysts' expectations. It was a weak quarter for the company with a miss of analysts' earnings estimates.
Markforged posted the slowest revenue growth in the group. As expected, the stock is down 21.1% since the results and currently trades at $0.48.
Read our full analysis of Markforged's results here.
Stratasys (NASDAQ:SSYS)
Born from the Founder’s idea of making a toy frog with a glue gun, Stratasys (NASDAQ:SSYS) offers 3D printers and related materials, software, and services to many industries.
Stratasys reported revenues of $144.1 million, down 3.6% year on year, in line with analysts' expectations. Taking a step back, it was a mixed quarter for the company with an impressive beat of analysts' earnings estimates but a miss of analysts' Products revenue estimates.
The stock is flat since reporting and currently trades at $8.88.
Read our full, actionable report on Stratasys here, it's free.
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