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What's happening: Shares ofProto Labs soared as much as 20% Thursday after the quick-turn manufacturerannounced record fourth-quarter and full-year 2014 earnings.
Why it's happening: In the fourth quarter, Proto Labs' revenue grew by 27.3% year over year to $56.1 million, translating to $0.39 in earnings per share, or $0.43 on an adjusted basis. These figures came in slightly above Wall Street expectations for Proto Labs to close out the fourth quarter with $54.6 million in revenue and $0.42 in adjusted earnings.
Across its manufacturing services, Proto Labs reported a 40% year-over-year increase in the number of unique product developers it served during the quarter, which suggests the company's rapid manufacturing services remain a compelling value proposition in the marketplace. Excluding the company's recent acquisition of 3D printing service bureauFineline, Proto Labs' legacy Firstcut CNC machining and Protomold injection molding manufacturing services served 20.3% more product developers during the quarter than they did in the year-ago period.
During the earnings conference call, Proto Labs issued its first-quarter 2015 revenue and earnings guidance, and the midpoints of its ranges came in above what the Street expected. For the first quarter, Proto Labs expects to generate $56.5 million to $59.5 million in revenue and to take home $0.43 to $0.47 per share in earnings. Prior to the guidance release, Wall Street analysts had expected Proto Labs to generate $57.8 million in revenue and $0.39 per share in earnings in the first quarter.
The article Why Proto Labs Inc. Shares Are Soaring originally appeared on Fool.com.
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