Why Proto Labs Stock Soared 34% After Earnings
Proto Labs (NYSE: PRLB) stock jumped 34.1% through 12:05 p.m. ET Friday after beating analyst projections for Q3 sales, and crushing on earnings.
Heading into the quarterly report, Wall Street had forecast Proto Labs would earn $0.32 per share on $121.4 million in Q3. In fact, sales were $125.6 million, and Proto Labs reported a $0.47-per-share profit -- nearly 50% more than it was supposed to earn.
Now, not all the news was good. Proto Labs may have earned $0.47 per share pro forma, but its earnings as calculated according to generally accepted accounting principles (GAAP) were significantly lower -- $0.29 per share. That marked a 6.5% decline in profits from one year ago, and revenue fell nearly 4%.
Source Fool.com
