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Proto Labs (PRLB) to Post Q3 Earnings: What's in the Cards?
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Proto Labs, Inc. (PRLB - Free Report) is scheduled to report third-quarter 2017 results on Oct 26, before the market opens.
In the past four quarters, the company delivered better-than-expected results, with an average positive earnings surprise of 9.11%. In the last quarter, the company’s earnings of 49 cents per share exceeded the Zacks Consensus Estimate by 2.08%.
Year to date, the company’s shares have yielded 61.7% return, outperforming the gain of 59.4% recorded by the industry it belongs to.
Factors to Influence Q3 Results
We believe that growing demand for custom prototypes and low-volume production will drive Proto Labs’ businesses in the quarters ahead. Its total addressable market is estimated to be approximately in the $7-$8 billion range. We believe that 3D printing launch in Europe through Alphaform AG buyout and the launch of Rapid Overmolding service has benefitted the company. Also, increase in Liquid Silicone Rubber and lathe offerings and facility expansions done in 2016 have been advantageous.
Proto Labs served more than 31,000 unique product developers in 2016 while currently serves more than 14,000 unique product developers every quarter. To leverage benefits from the growing market opportunities, the company intends to expand its geographical footprint, add new customers, source more business from existing customers, focus on developing new manufacturing processes and offer improvised products. In the third quarter, it expanded its 3D printing services by adding Multi Jet Fusion technology to its portfolio and launched on-demand manufacturing service for molded production parts.
For the third quarter, Proto Labs anticipates revenues to be within $83-$88 million, representing year-over-year growth of 8-14%. Non-GAAP earnings per share are predicted to be within 48-54 cents.
Despite such positives, global economic uncertainties and stiff competition from other prototype manufacturers remain concerns. Also, any failure in the research and development of new products or inability to meet the specific requirements of the customers might dent the company’s profitability.
Earnings Whispers
Our proven model provides some idea on the stocks that are about to release their earnings results. Per the model, a stock needs to have a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy) or 2 (Buy) or 3 (Hold) for a likely earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
That is not the case for Proto Labs 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 52 cents.
Zacks Rank: Proto Labs’ Zacks Rank #3 when combined with 0.00% ESP makes surprise prediction difficult.
Note that we caution against stocks with Zacks Rank #4 or 5 (Sell-rated) 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:
Lincoln Electric Holdings, Inc. (LECO - Free Report) , with an Earnings ESP of +1.21% and a Zacks Rank #2.
Caterpillar, Inc. (CAT - Free Report) , with an Earnings ESP of +1.27% and a Zacks Rank #2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Proto Labs (PRLB) to Post Q3 Earnings: What's in the Cards?
Proto Labs, Inc. (PRLB - Free Report) is scheduled to report third-quarter 2017 results on Oct 26, before the market opens.
In the past four quarters, the company delivered better-than-expected results, with an average positive earnings surprise of 9.11%. In the last quarter, the company’s earnings of 49 cents per share exceeded the Zacks Consensus Estimate by 2.08%.
Year to date, the company’s shares have yielded 61.7% return, outperforming the gain of 59.4% recorded by the industry it belongs to.
Factors to Influence Q3 Results
We believe that growing demand for custom prototypes and low-volume production will drive Proto Labs’ businesses in the quarters ahead. Its total addressable market is estimated to be approximately in the $7-$8 billion range. We believe that 3D printing launch in Europe through Alphaform AG buyout and the launch of Rapid Overmolding service has benefitted the company. Also, increase in Liquid Silicone Rubber and lathe offerings and facility expansions done in 2016 have been advantageous.
Proto Labs served more than 31,000 unique product developers in 2016 while currently serves more than 14,000 unique product developers every quarter. To leverage benefits from the growing market opportunities, the company intends to expand its geographical footprint, add new customers, source more business from existing customers, focus on developing new manufacturing processes and offer improvised products. In the third quarter, it expanded its 3D printing services by adding Multi Jet Fusion technology to its portfolio and launched on-demand manufacturing service for molded production parts.
For the third quarter, Proto Labs anticipates revenues to be within $83-$88 million, representing year-over-year growth of 8-14%. Non-GAAP earnings per share are predicted to be within 48-54 cents.
Despite such positives, global economic uncertainties and stiff competition from other prototype manufacturers remain concerns. Also, any failure in the research and development of new products or inability to meet the specific requirements of the customers might dent the company’s profitability.
Earnings Whispers
Our proven model provides some idea on the stocks that are about to release their earnings results. Per the model, a stock needs to have a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy) or 2 (Buy) or 3 (Hold) for a likely earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
That is not the case for Proto Labs 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 52 cents.
Proto Labs, Inc. Price and EPS Surprise
Proto Labs, Inc. Price and EPS Surprise | Proto Labs, Inc. Quote
Zacks Rank: Proto Labs’ Zacks Rank #3 when combined with 0.00% ESP makes surprise prediction difficult.
Note that we caution against stocks with Zacks Rank #4 or 5 (Sell-rated) 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:
Kennametal Inc. (KMT - Free Report) , with an Earnings ESP of +1.76% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lincoln Electric Holdings, Inc. (LECO - Free Report) , with an Earnings ESP of +1.21% and a Zacks Rank #2.
Caterpillar, Inc. (CAT - Free Report) , with an Earnings ESP of +1.27% and a Zacks Rank #2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>