Proto Labs, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year
Proto Labs, Inc. (NYSE:PRLB) just released its latest third-quarter results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 2.9% to hit US$108m. Proto Labs also reported a statutory profit of US$0.55, which was an impressive 35% above what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Proto Labs
Taking into account the latest results, the current consensus from Proto Labs' six analysts is for revenues of US$458.5m in 2021, which would reflect a satisfactory 3.9% increase on its sales over the past 12 months. Statutory earnings per share are forecast to decrease 6.0% to US$1.99 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$461.0m and earnings per share (EPS) of US$1.98 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
There were no changes to revenue or earnings estimates or the price target of US$132, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Proto Labs at US$165 per share, while the most bearish prices it at US$105. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Proto Labs' revenue growth will slow down substantially, with revenues next year expected to grow 3.9%, compared to a historical growth rate of 13% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.4% next year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Proto Labs.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Proto Labs' revenues are expected to perform worse than the wider industry. The consensus price target held steady at US$132, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Proto Labs analysts - going out to 2024, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 2 warning signs for Proto Labs that you need to be mindful of.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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