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What: Shares of rapid prototype maker Proto Labs
So what: The bottom line was actually better than expected, with earnings per share of $0.23 beating estimates by $0.03. But the top line is concerning investors, and revenue growth of 24.5% to $30 million was just short of estimates.
Now what: The stock is trading at 26 times forward earnings, so any miss on the top line puts the company's growth outlook into question. But I don't think the revenue miss was enough to be worried about and the growth rate was very impressive. Proto Labs provides a vital service to manufacturers looking for fast, low-volume production, and I think the company's prospects are bright. I see today's dip as more of a discount than a warning and would be a buyer on the weakness.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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