Q3 Earnings Recap: Proto Labs (NYSE:PRLB) Tops Custom Parts Manufacturing Stocks

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at custom parts manufacturing stocks, starting with Proto Labs (NYSE:PRLB).

Onshoring and inventory management–themes that grew in focus after COVID wreaked havoc on global supply chains–are tailwinds for companies that combine economies of scale with reliable service. Many in the space have adopted 3D printing to efficiently address the need for bespoke parts and components, but all companies are still at the whim of economic cycles. For example, consumer spending and interest rates can greatly impact the industrial production that drives demand for these companies’ offerings.

The 4 custom parts manufacturing stocks we track reported a satisfactory Q3. As a group, revenues missed analysts’ consensus estimates by 3.7% while next quarter’s revenue guidance was 1.1% below.

Luckily, custom parts manufacturing stocks have performed well with share prices up 13.6% on average since the latest earnings results.

Best Q3: Proto Labs (NYSE:PRLB)

Proto Labs reported revenues of $125.6 million, down 3.9% year on year. This print exceeded analysts’ expectations by 3.3%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

"Our disciplined approach and resilient business model drove solid financial results in the third quarter, despite continued dynamic challenges in the manufacturing sector," said Rob Bodor, President and Chief Executive Officer.

Proto Labs pulled off the biggest analyst estimates beat of the whole group. The stock is up 52.4% since reporting and currently trades at $41.77.

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Stratasys (NASDAQ:SSYS)

Stratasys reported revenues of $140 million, down 13.6% year on year, in line with analysts’ expectations. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Stratasys pulled off the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 14.4% since reporting. It currently trades at $9.60.

Weakest Q3: 3D Systems (NYSE:DDD)

3D Systems reported revenues of $112.9 million, down 8.8% year on year, falling short of analysts’ expectations by 1.7%. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

3D Systems delivered the weakest full-year guidance update in the group. Interestingly, the stock is up 15% since the results and currently trades at $3.90.

Markforged (NYSE:MKFG)

Markforged reported revenues of $20.48 million, up 2% year on year. This number lagged analysts' expectations by 16.6%. All in all, it was a softer quarter for the company.

Markforged delivered the fastest revenue growth but had the weakest performance against analyst estimates among its peers. The stock is down 27.4% since reporting and currently trades at $3.24.

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This content was originally published on Stock Story