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Proto Labs (PRLB -0.29% ) , a leading quick-turn contract manufacturer, is slated to report its second-quarter 2022 results before the market open on Friday, Aug. 5. An analyst conference call is scheduled for 8:30 a.m. ET the same day.

Investors will probably be approaching the company's upcoming report with cautious optimism. Proto Labs -- which serves many customers in the industrial sector -- has been significantly hurt by the pandemic, particularly the earlier stages of the crisis. The company has been struggling for some time to solidly grow revenue, which has also negatively affected its bottom-line performance. While its results have recently been rebounding from the pandemic hit, they could suffer again if the U.S. economy slips into a recession.

That said, after having a slow start in January, Proto Labs finished the first quarter on a strong note. So, there are reasons for some guarded optimism. Indeed, investors were pleased enough with last quarter's results that they sent shares up 5.3% on a down day for the overall market.

On that note, Proto Labs stock had a terrible 2021, losing 67% of its value. But it's holding up better than the market in 2022. Through July 20, it's down 4.3%, while the S&P 500 and Nasdaq Composite returns are underwater by 16.2% and 23.6%, respectively.

Here's what to watch in Proto Labs' upcoming report.

Data sources: Proto Labs and Yahoo! Finance. 

The quarter to be reported marks the first time since the fourth quarter of 2020 that revenue will be all organic. (Organic revenue excludes contributions made from acquisitions made within the last year.) In the last five quarters, the company's year-over-year revenue growth has received a boost from its late January 2021 acquisition of 3D Hubs ("Hubs"). Hubs is a "leading online manufacturing platform that provides customers with on-demand access to a global network of approximately 240 premium manufacturing partners," Proto Labs said at the time of the deal.

For context, in the first quarter, Proto Labs' revenue grew 6.9% year over year to $124.2 million. Organic revenue growth was about 5%, and organic revenue growth in constant currency was 6.2%. Growth was driven by the CNC machining and 3D printing operations, whose sales rose 25% and 14%, respectively, year over year. Sales declined 5.3% in injection molding, the company's largest business, and declined 10% in sheet metal.

Adjusted for one-time items, net income was $10.4 million, or $0.38 per share, down 5% year over year. This result easily exceeded the analyst consensus estimate of $0.29 per share.

Proto Labs stock is likely to move if management's third-quarter outlook comes in notably different than Wall Street's expectations.

For Q3, analysts are currently modeling for revenue to increase 6.4% year over year to $133.3 million and adjusted EPS to rise 26% to $0.34.

Beth McKenna has no position in any of the stocks mentioned. The Motley Fool recommends Proto Labs. The Motley Fool has a disclosure policy.

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