Protolabs reported fourth quarter and annual results that showed revenue and earnings down in both periods and offered cautious guidance for the first quarter of 2021 that reflects their uncertainty over the pace of economic recovery.
The Maple Plain-based contract manufacturer was expecting a dip in revenue after facing a challenging year in which industrial production slowed globally.
“Protolabs responded very well in the face of unforeseen challenges driven by the emergence of the global pandemic and the ensuing substantial decline in global economic activity during 2020,” said Chief Executive Vicki Holt in the company’s earnings release.
Fourth quarter revenue was $105.2 million, down 2.1%, and net income was $9.6 million, or 36 cents per diluted share. In the same period last year, earnings were $15.2 million, or 57 cents per share.
Revenue for the year was $434.4 million, down 5.3% from the previous year. Net income for the year was $50.9 million, or $1.89 per diluted share, down from $63.6 million, or $2.35 per share.
The company offered guidance for the first quarter of 2021 saying it expects revenue to be in the range of $108 to $118 million. That would be a sequential increase over fourth quarter revenue but the high and low points of the guidance straddle results from the first quarter of 2020.
Protolabs Chief Financial Officer John Wray told analysts on the company’s earnings call that the revenue guidance reflects the uncertainty in the economy.
“Our Europe business, in particular, will likely be impacted in the first quarter by Brexit and new lockdown measures creating demand challenges as the recovery slows,” Wray said.
Shares of Protolabs were trading at $189.78 per share, down 5.5% in early trading Friday. Shares over the last 52-weeks have traded between $63.19 and $286.57 per share.
Patrick Kennedy • 612-673-7926