Shares of Proto Labs (PRLB), an e-commerce driven digital manufacturer of on-demand 3D-printed, computer numerical control machined and injection-molded custom parts, surged in morning trading after the company reported quarterly earnings that beat analysts' expectations and guidance was in-line with estimates.

QUARTERLY EARNINGS BEAT: For the first quarter, Proto Labs reported adjusted earnings per share of 51c and revenue of $80.2M, exceeding analysts' forecast of 45c and $75.06M, respectively. The quarterly results also beat the company's guidance of 42c-48c for EPS and revenue of $73M-$78M. The number of unique product developers and engineers served totaled 14,801 in Q1, an increase of 11.7% over the same period last year. Gross margin was 56.5% of revenue for Q1 compared with 54.6% last year, and operating margin was 22.1% of revenue for Q1 vs. 20.8% last year, the company said. Proto Labs' President and CEO Viki Holt said the company is "pleased" with the start to the fiscal year, and noted that the company had double digit revenue growth across all services.

LOOKING AHEAD: On the company's earnings call discussing Q1 results, Proto Labs forecast second quarter EPS of 45c-51c and revenue of $77M-$83M, in line with analysts' estimates of 48c and $78.62M, respectively. The tax rate for Q2 is projected at approximately 32%. The company sees a $1M negative impact from foreign currency in Q2 and Proto labs expects its gross margin to be in line with Q1. CEO Holt also noted that founder and Chairman Larry Lukis, who is not seeking re-election at the company's annual meeting in May, is "very supportive" of Proto Labs and will continue to be one of the company's largest shareholders. "

BEST QUARTER IN AWHILE": In a note to clients this morning, Craig Hallum analyst Steve Dyer said Proto Labs' Q1 "appears to be the best quarter printed in awhile," with organic double-digit revenue growth and "good" cost control. Dyer has a Hold rating on the stock.

PRICE ACTION: In late morning trading, Proto Labs is up over 9% to $59.00. Shares are up over 14% year-to-date.