FARO Technologies (Nasdaq: FARO) reported earnings yesterday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), FARO Technologies beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved significantly, and GAAP earnings per share increased significantly.

Gross margins contracted, operating margins improved, and net margins improved.

Revenue details
FARO Technologies logged revenue of $77.1 million. The four analysts polled by S&P Capital IQ looked for sales of $74.4 million on the same basis. GAAP reported sales were 32% higher than the prior-year quarter's $58.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.56. The four earnings estimates compiled by S&P Capital IQ predicted $0.51 per share. GAAP EPS of $0.56 for Q4 were 87% higher than the prior-year quarter's $0.30 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 56.5%, 250 basis points worse than the prior-year quarter. Operating margin was 16.2%, 560 basis points better than the prior-year quarter. Net margin was 12.3%, 400 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $64.9 million. On the bottom line, the average EPS estimate is $0.32.

Next year's average estimate for revenue is $302.2 million. The average EPS estimate is $1.97.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 378 members rating the stock outperform and 25 members rating it underperform. Among 151 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 145 give FARO Technologies a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on FARO Technologies is outperform, with an average price target of $52.50.

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