Why did PRLB's Q2 2024 EPS fall short of forecasts?

Proto Labs Inc (PRLB) experienced a shortfall in its Q2 2024 EPS, falling by -0.03 compared to the previous quarter, due to several key factors:

|code|Ticker|Name|Date|Basic EPS|Estimate EPS|market_code|
|---|---|---|---|---|---|---|
|PRLB|PRLB.N|Proto Labs|2024 Q1|0.21|0.32|169|
|PRLB|PRLB.N|Proto Labs|2024 Q2|0.18|0.35|169|

1. **Strategic Focus and Challenges**: Despite positive revenue growth, Proto Labs faced challenges in meeting EPS estimates. The company's CFO, Dan Schumacher, highlighted the need for strategic focus and management of these challenges.
2. **Cost Management and Margin Pressure**: The company's network non-GAAP gross margin was 31.7%, which influenced the EPS outcome. Increased order growth and higher-margin factory business were key drivers, but the company needed to manage costs more effectively to meet EPS targets.

In conclusion, the shortfall in PRLB's Q2 2024 EPS was likely a result of a combination of strategic challenges, cost management issues, and margin pressure. Despite these setbacks, the company's focus on order growth and higher-margin factory business presented positive outcomes, influencing revenue surpassing forecasts.