After reporting earnings before the opening bell this morning, rapid manufacturing company Proto Labs got hit hard, falling by just over 13% on the NYSE Thursday.
In short, revenue for the 2nd quarter was up 17% year over year, however it came in lower than analyst's expectations, and rising expenses cut into the company's profitability.
One of the interesting notes from the release however was the explosion in the company's 3d printing business, which was up 66.7% from the 2nd quarter last year.
The company noted in its earnings release that it served a record number of product development customers, suggesting that the company's services continue to be in high demand, however most of that growth came from 3d printing services.
"In the Americas, we experienced slower-than-expected growth in injection molding and CNC machining. This was primarily due to a slowdown in the U.S. industrial economy as well as attrition in sales leadership."
3d printing tends to be a lower margin business than injection molding and CNC, which most likely hurt the company's overall profit margin as 3d printing became a larger part of the business.