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Proto Labs (PRLB) to Report Q3 Earnings: What to Expect?
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Proto Labs, Inc. (PRLB - Free Report) is scheduled to report third-quarter 2016 results on Oct 27, before the market opens. The Zacks Consensus Estimate for the quarter is pegged at 39 cents.
In the trailing four quarters, Proto Labs reported better-than-expected results in one, while underperforming in the rest with an average negative surprise of 2.76%. Last quarter, the company’s earnings of 41 cents per share lagged the Zacks Consensus Estimate of 45 cents by 8.89%.
Let us see how things are shaping up for Proto Labs this quarter.
Factors to Influence Q3 Results
Being an international company, Proto Labs’ performance is largely influenced by uncertainties in the global economy and by the economic health of the countries in which it operates. In July, the International Monetary Fund lowered the global economic growth forecast to 3.1% for 2016. Also, unfavorable movements in foreign currencies add to the woes, largely impacting the company’s international trade.
Apart from these macro issues, Proto Labs faces risks from stiff competition from other prototype manufacturers. Also, 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.
However, we believe that Proto Labs is working diligently to improve its sales performance, through various organic and inorganic initiatives, and operational efficiency. An efficient management and marketing team as well as emphasis on research and development of new and improved products will favor the company.
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. Please check our Earnings ESP Filter that enables you find stocks that are expected to come out with earnings surprises.
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 39 cents.
Zacks Rank: Proto Labs’s Zacks Rank #3 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:
AO Smith Corp. (AOS - Free Report) , with an Earnings ESP of +2.22% and a Zacks Rank #3.
Parker-Hannifin Corporation (PH - Free Report) , with an Earnings ESP of +1.40% and a Zacks Rank #3.
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Proto Labs (PRLB) to Report Q3 Earnings: What to Expect?
Proto Labs, Inc. (PRLB - Free Report) is scheduled to report third-quarter 2016 results on Oct 27, before the market opens. The Zacks Consensus Estimate for the quarter is pegged at 39 cents.
In the trailing four quarters, Proto Labs reported better-than-expected results in one, while underperforming in the rest with an average negative surprise of 2.76%. Last quarter, the company’s earnings of 41 cents per share lagged the Zacks Consensus Estimate of 45 cents by 8.89%.
Let us see how things are shaping up for Proto Labs this quarter.
Factors to Influence Q3 Results
Being an international company, Proto Labs’ performance is largely influenced by uncertainties in the global economy and by the economic health of the countries in which it operates. In July, the International Monetary Fund lowered the global economic growth forecast to 3.1% for 2016. Also, unfavorable movements in foreign currencies add to the woes, largely impacting the company’s international trade.
Apart from these macro issues, Proto Labs faces risks from stiff competition from other prototype manufacturers. Also, 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.
However, we believe that Proto Labs is working diligently to improve its sales performance, through various organic and inorganic initiatives, and operational efficiency. An efficient management and marketing team as well as emphasis on research and development of new and improved products will favor the company.
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. Please check our Earnings ESP Filter that enables you find stocks that are expected to come out with earnings surprises.
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 39 cents.
Zacks Rank: Proto Labs’s Zacks Rank #3 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:
AO Smith Corp. (AOS - Free Report) , with an Earnings ESP of +2.22% and a Zacks Rank #3.
Ingersoll-Rand Plc (IR - Free Report) , with an Earnings ESP of +0.78% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Parker-Hannifin Corporation (PH - Free Report) , with an Earnings ESP of +1.40% and a Zacks Rank #3.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>