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Proto Labs (PRLB) Set for Q2 Earnings: What's in the Cards?
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Proto Labs, Inc. (PRLB - Free Report) is scheduled to report second-quarter 2016 results on Jul 28, before the market opens. The Zacks Consensus Estimate for the quarter is pegged at 45 cents.
In the trailing four quarters, Proto Labs reported better-than-expected results in two, while underperforming in the rest with an average beat of 0.60%. Last quarter, the company’s earnings of 40 cents per share lagged the Zacks Consensus Estimate of 42 cents by 4.76%. Let us see how things are shaping up for Proto Labs this quarter.
Factors to Influence Q2 Results
Proto Labs’ efficient management and marketing team as well as its efforts for researching and developing new and improved products will prove beneficial, going forward. Also, various organic and inorganic initiatives are expected to enhance the company’s revenue-generation capabilities in the quarters ahead. However, the impacts of these positives are dimmed by the presence of some near-term headwinds.
Financial performance of Proto Labs is highly correlated to the economic conditions in the U.S. and of the foreign countries where it operates. Though headwinds, including unfavorable foreign currency movements and uncertainties in some developed and developing economies have eased a bit, we believe that industrial products stocks like Proto Labs are still affected by them.
In addition, Proto Labs faces stiff competition from other prototype manufacturers. Any failure in the research and development of new products or meeting the specific requirements of the customers might severely affect the company’s image and increase its financial burden as well.
Earnings Whispers
Our proven model does not conclusively show that Proto Labs is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Earnings ESP of Proto Labs is currently 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate stand at 45 cents.
Zacks Rank: Proto Labs’s Zacks Rank #2 when combined with 0.00% ESP makes surprise predictions difficult.
Note that we caution against stocks with Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies in the sector that you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Harsco Corporation , with an Earnings ESP of +38.46% and a Zacks Rank #1.
Ingersoll-Rand Plc (IR - Free Report) , with an Earnings ESP of +0.77% and a Zacks Rank #2.
Deere & Company (DE - Free Report) , with an Earnings ESP of +9.47% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Proto Labs (PRLB) Set for Q2 Earnings: What's in the Cards?
Proto Labs, Inc. (PRLB - Free Report) is scheduled to report second-quarter 2016 results on Jul 28, before the market opens. The Zacks Consensus Estimate for the quarter is pegged at 45 cents.
In the trailing four quarters, Proto Labs reported better-than-expected results in two, while underperforming in the rest with an average beat of 0.60%. Last quarter, the company’s earnings of 40 cents per share lagged the Zacks Consensus Estimate of 42 cents by 4.76%. Let us see how things are shaping up for Proto Labs this quarter.
Factors to Influence Q2 Results
Proto Labs’ efficient management and marketing team as well as its efforts for researching and developing new and improved products will prove beneficial, going forward. Also, various organic and inorganic initiatives are expected to enhance the company’s revenue-generation capabilities in the quarters ahead. However, the impacts of these positives are dimmed by the presence of some near-term headwinds.
Financial performance of Proto Labs is highly correlated to the economic conditions in the U.S. and of the foreign countries where it operates. Though headwinds, including unfavorable foreign currency movements and uncertainties in some developed and developing economies have eased a bit, we believe that industrial products stocks like Proto Labs are still affected by them.
In addition, Proto Labs faces stiff competition from other prototype manufacturers. Any failure in the research and development of new products or meeting the specific requirements of the customers might severely affect the company’s image and increase its financial burden as well.
Earnings Whispers
Our proven model does not conclusively show that Proto Labs is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Earnings ESP of Proto Labs is currently 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate stand at 45 cents.
Zacks Rank: Proto Labs’s Zacks Rank #2 when combined with 0.00% ESP makes surprise predictions difficult.
PROTO LABS INC Price and EPS Surprise
PROTO LABS INC Price and EPS Surprise | PROTO LABS INC Quote
Note that we caution against stocks with Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies in the sector that you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Harsco Corporation , with an Earnings ESP of +38.46% and a Zacks Rank #1.
Ingersoll-Rand Plc (IR - Free Report) , with an Earnings ESP of +0.77% and a Zacks Rank #2.
Deere & Company (DE - Free Report) , with an Earnings ESP of +9.47% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>