Protolabs reported its second consecutive quarter of record revenue but lower profits that missed analyst expectations, sending its share price down sharply on Thursday.
The Maple Plain-based provider of digital manufacturing services reported its net income fell 67% to $4.8 million, or 17 cents a share. Sales for the period ending Sept. 30 were up 17% to $125.3 million.
Protolabs' chief executive Rob Bodor bluntly described the recent results during the opening of the company's third quarter conference call. "We are disappointed in our third quarter earnings performance," Bodor said.
Bodor later laid out out strategies to deal with labor headwinds and materials shortages that dulled results. Those plans included taking more pricing actions, more investments to improve internal operating efficiencies and more investments in robotics automation to reduce the need for additional labor.
Analysts expected the contract manufacturer to earn 43 cents a share on revenue of $126.8 million for the third quarter.
The revenue and earnings miss drove down Protolab's share price 20% on Thursday to close at $58.64. That was at the low end of its 52-week range, after climbing over $200 in January.
"Our earnings in the third quarter were impacted by post pandemic-related cost inflation, as well as continued investments in our systems and product offering in order to maintain our position as the largest and fastest provider of digital manufacturing services," said John Way, Protolab's chief financial officer, in a news release.
The World Economic Forum recently recognized Protolabs' Plymouth injection molding facility for its contributions to advanced manufacturing by inducting it into the forum's Global Lighthouse Network, which recognizes members for their contributions to the fourth industrial revolution.
Last week, Protolabs also announced an expansion of its additive manufacturing plant in Raleigh, N.C. It will add 120,000 square feet to its 3-D printing services capabilities for clients seeking rapid prototyping and production-ready parts at scale.
