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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
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  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

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

PRLB Cover Image

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)

Pioneering the concept of online quoting and manufacturing for custom prototypes and low-volume production parts, Proto Labs (NYSE: PRLB) offers injection molding, 3D printing, and sheet metal fabrication for manufacturers in various industries.

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 Total Revenue

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.

Is now the time to buy Proto Labs? Access our full analysis of the earnings results here, it’s free.

Stratasys (NASDAQ: SSYS)

Born from the Founder’s idea of making a toy frog with a glue gun, Stratasys (NASDAQ: SSYS) offers 3D printers and related materials, software, and services to many industries.

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 Total Revenue

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.

Is now the time to buy Stratasys? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: 3D Systems (NYSE: DDD)

Founded by the inventor of stereolithography, 3D Systems (NYSE: DDD) engineers, manufactures, and sells 3D printers and other related products to the aerospace, automotive, healthcare, and consumer goods industries.

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.

Read our full analysis of 3D Systems’s results here.

Markforged (NYSE: MKFG)

Beginning as a start-up at SolidWorks World–an annual design and engineering conference, Markforged (NYSE: MKFG) offers 3D printers and softwares to manufacturers of various industries.

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.

Read our full, actionable report on Markforged here, it’s free.

Market Update

Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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