Stock Track | Proto Labs Stock Plummets 5.05% as Q4 Earnings Miss Expectations, Weighed Down by Manufacturing Contraction

Stock Track
02-08

Proto Labs Inc. (PRLB) stock plummeted by 5.05% in the Friday intraday trading session, following the company's fourth-quarter 2024 earnings release.

The custom parts manufacturer reported a loss of $404,000, or $0.02 per share, in the fourth quarter. Adjusted for non-recurring costs and stock option expense, the company earned $0.38 per share, missing the consensus estimate of $0.32 per share from analysts polled by FactSet.

Revenue for the quarter came in at $121.8 million, down 2.6% from the same period last year but beating analysts' expectations of $120.12 million. For the full year 2024, Proto Labs reported profit of $16.6 million, or $0.66 per share, on revenue of $500.9 million.

The company's disappointing earnings performance can be attributed to the ongoing manufacturing contraction in the U.S., as indicated by the Purchasing Managers' Index (PMI). According to the earnings call transcript, Proto Labs faced lower volumes in its factory segment, which weighed on the consolidated gross margin in the fourth quarter.

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