Yahoo Finance Spotting Winners: Markforged (NYSE:MKFG) And Custom Parts Manufacturing Stocks In Q1
As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at custom parts manufacturing stocks, starting with Markforged (NYSE:MKFG).
Onshoring and inventory management–themes that grew in focus after COVID wreaked havoc on global supply chains–are tailwinds for companies that combine economies of scale with reliable service. Many in the space have adopted 3D printing to efficiently address the need for bespoke parts and components, but all companies are still at the whim of economic cycles. For example, consumer spending and interest rates can greatly impact the industrial production that drives demand for these companies’ offerings.
The 4 custom parts manufacturing stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 0.7%. while next quarter's revenue guidance was 1.8% below consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and custom parts manufacturing stocks have had a rough stretch, with share prices down 14.3% on average since the previous earnings results.
Weakest Q1: Markforged (NYSE:MKFG)
Producing the first 3D printers capable of printing continuous carbon fiber reinforcement, Markforged (NYSE:MKFG) offers 3D printers and softwares to manufacturers of various industries. .
Markforged reported revenues of $20.55 million, down 14.7% year on year, in line with analysts' expectations. Overall, it was a weak quarter for the company with a miss of analysts' earnings estimates.
“We started 2024 with strong execution, setting a solid foundation for the year ahead,” said Shai Terem, President and CEO of Markforged.
Markforged delivered the slowest revenue growth of the whole group. The stock is down 21.1% since reporting and currently trades at $0.48.
Read our full report on Markforged here, it's free.
Best Q1: Desktop Metal (NYSE:DM)
Originating from a research lab at MIT, Desktop Metal (NYSE:DM) offers 3D printers, production materials, and software to many industries.
Desktop Metal reported revenues of $40.6 million, down 1.7% year on year, in line with analysts' expectations. It was an exceptional quarter for the company with an impressive beat of analysts' earnings estimates and optimistic EBITDA guidance for the full year.
Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 40.5% since reporting. It currently trades at $5.02.
Is now the time to buy Desktop Metal? Access our full analysis of the earnings results here, it's free.
Stratasys (NASDAQ:SSYS)
Born from the Founder’s idea of making a toy frog with a glue gun, Stratasys (NASDAQ:SSYS) offers 3D printers and related materials, software, and services to many industries.
Stratasys reported revenues of $144.1 million, down 3.6% year on year, in line with analysts' expectations. It was a mixed quarter for the company with an impressive beat of analysts' earnings estimates but a miss of analysts' Products revenue estimates.
The stock is flat since the results and currently trades at $8.88.
Read our full analysis of Stratasys's results here.
Proto Labs (NYSE:PRLB)
Pioneering the concept of online quoting and manufacturing for custom prototypes and low-volume production parts, Proto Labs (NYSE:PRLB) offers injection molding, 3D printing, and sheet metal fabrication for manufacturers in various industries.
Proto Labs reported revenues of $127.9 million, up 1.6% year on year, surpassing analysts' expectations by 2.6%. More broadly, it was a decent quarter for the company with an impressive beat of analysts' 3D Printing revenue estimates but a miss of analysts' earnings estimates.
Proto Labs delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 4% since reporting and currently trades at $32.42.
Read our full, actionable report on Proto Labs here, it's free.
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