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.
Source Fool.com
