Proto Labs (NYSE: PRLB) reported Q3 EPS of $0.76, $0.02 better than the analyst estimate of $0.74. Revenue for the quarter came in at $117.5 million versus the consensus estimate of $119.38 million.

Third Quarter 2019 Highlights include:

• Revenue for the third quarter of 2019 was $117.5 million, representing a 1.8 percent increase over revenue of $115.4 million for the third quarter of 2018.
• The number of unique product developers and engineers served totaled 21,471 in the third quarter of 2019, an increase of 3.3 percent over the third quarter of 2018.
• Net income for the third quarter of 2019 was $16.8 million, or $0.62 per diluted share.
• Non-GAAP net income was $20.4 million, or $0.76 per diluted share. See “Non-GAAP Financial Measures” below.

“Our business grew year-over-year in the third quarter in an industrial environment that has continued to soften throughout 2019,” said Vicki Holt, President and Chief Executive Officer. “Despite a weaker macro climate, our customer retention rate remains high as we continue to delight our customers by expanding and improving our industry-leading digital manufacturing offer.”

Additional Third Quarter 2019 highlights include:

• Gross margin was 50.8 percent of revenue for the third quarter of 2019, compared with 52.0 percent for the second quarter of 2019.
• GAAP operating margin was 18.1 percent of revenue for the third quarter of 2019, compared to 16.9 percent for the second quarter of 2019.
• Non-GAAP operating margin was 21.6 percent of revenue for the third quarter of 2019, compared to 20.6 percent for the second quarter of 2019. See “Non-GAAP Financial Measures” below.
• EBITDA was $28.7 million, or 24.4 percent of revenue, for the third quarter of 2019.
• Adjusted EBITDA was $32.4 million, or 27.5 percent of revenue, for the third quarter of 2019. See “Non-GAAP Financial Measures” below.
• Cash flow from operations was $28.9 million in the third quarter of 2019.
• Cash and investments balance was $155.0 million at September 30, 2019.
• The Company repurchased $12.1 million, or 128,077 shares, of common stock during the quarter.

“Our customers are taking a more cautious approach in 2019 in general, including R&D projects, and that is reflected in our financial results year-to-date,” said John Way, Chief Financial Officer. “Our business continues to generate strong cash flows in order to invest for future growth, as well as return capital to shareholders in the form of stock repurchases.”

For earnings history and earnings-related data on Proto Labs (PRLB) click here.