Proto Labs Stock Plummets After Q3 Earnings Miss, Weak Margins - Proto Labs (NYSE:PRLB)

Proto Labs Inc PRLB reported third-quarter sales growth of 16.6% year-over-year to $125.3 million, missing the consensus of $126.82 million. Hubs generated $8.8 million of revenue.
Adjusted EPS decreased to $0.35 from $0.67 in 3Q20, missing the consensus of $0.43.
The gross margin contracted by 670 bps to 44.1%. The adjusted operating income decreased by 43% Y/Y to $12.74 million, and the margin contracted by 1,060 bps to 10.2%.
Adjusted EBITDA declined 28.5% Y/Y to $17.1 million, and margin contracted by 1,080 bps to 17.1%.
"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 CFO John Way.
Proto Labs generated cash from operating activities year-to-date of $32.23 million, compared to $82.37 million a year ago.
The company held a cash and investments balance of $83.9 million as of September 30, 2021.
Price Action: PRLB shares are trading lower by 20.89% at $58.32 on the last check Thursday.