A week ago, Proto Labs, Inc. (NYSE:PRLB) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Proto Labs beat earnings, with revenues hitting US$126m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 13%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following the latest results, Proto Labs' five analysts are now forecasting revenues of US$511.6m in 2025. This would be a reasonable 2.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 6.7% to US$0.67. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$508.2m and earnings per share (EPS) of US$0.74 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Check out our latest analysis for Proto Labs

It might be a surprise to learn that the consensus price target was broadly unchanged at US$45.00, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Proto Labs, with the most bullish analyst valuing it at US$50.00 and the most bearish at US$40.00 per share. This is a very narrow spread of estimates, implying either that Proto Labs is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 3.3% growth on an annualised basis. That is in line with its 2.8% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.8% annually. It's clear that while Proto Labs' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$45.00, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Proto Labs going out to 2026, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades  for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.