The 10-second takeaway
For the quarter ended March 31 (Q1), Proto Labs beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share expanded significantly.
Margins grew across the board.
Proto Labs reported revenue of $37.3 million. The seven analysts polled by S&P Capital IQ looked for sales of $36.9 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $30.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.35. The eight earnings estimates compiled by S&P Capital IQ forecast $0.32 per share. Non-GAAP EPS of $0.35 for Q1 were 59% higher than the prior-year quarter's $0.22 per share. GAAP EPS of $0.32 for Q1 were 45% higher than the prior-year quarter's $0.22 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 62.4%, 330 basis points better than the prior-year quarter. Operating margin was 30.5%, 500 basis points better than the prior-year quarter. Net margin was 22.2%, 620 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $40.1 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $161.2 million. The average EPS estimate is $1.38.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 152 members out of 170 rating the stock outperform, and 18 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Proto Labs a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Proto Labs is outperform, with an average price target of $54.71.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Proto Labs. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.