What factors drove PRLB's EPS surprises in 2024?

Proto Labs Inc (PRLB) experienced an EPS surprise of $0.09 on December 31, 2024, with a -4.9% last change and a last price of $31.64. The EPS surprise can be attributed to several factors:

|code|Ticker|Name|Date|Basic Earnings per Share|Total Revenue|Net Income|EPS Surprise|market_code|
|---|---|---|---|---|---|---|---|---|
|PRLB|PRLB.N|Proto Labs|20240331|0.21|1.2789E8|5268000|0.08|169|
|PRLB|PRLB.N|Proto Labs|20240630|0.39|1.25631E8|4540000|0.03|169|
|PRLB|PRLB.N|Proto Labs|20240930|0.67|1.25619E8|7189000|0.15|169|
|PRLB|PRLB.N|Proto Labs|20241231|0.66|1.2175E8|-404000|0.09|169|

1. **Revenue Growth**: Despite the net income being negative, the company's revenue grew, contributing to the EPS surprise. For instance, Q2 showed a 2.8% year-over-year revenue growth, and Q3 revenue hit $125.6 million, surpassing analyst estimates.
2. **Cost Management**: The company's network non-GAAP gross margin improved to 32.8% in the first half of 2024, up from 31.7% in the previous quarter. Effective cost management can lead to higher profitability and EPS.
3. **Market Conditions**: The company's ability to grow revenue amid challenging market conditions is a positive indicator. This suggests that Proto Labs may be adapting well to market challenges, which can positively impact EPS.

In summary, the EPS surprise at PRLB can be attributed to a combination of revenue growth, cost management, and resilience in challenging market conditions.