The 10-second takeaway
For the quarter ended Sep. 29 (Q3), FARO Technologies whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share contracted significantly.
Margins contracted across the board.
FARO Technologies logged revenue of $60.7 million. The five analysts polled by S&P Capital IQ predicted a top line of $68.2 million on the same basis. GAAP reported sales were 6.3% lower than the prior-year quarter's $64.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.21. The three earnings estimates compiled by S&P Capital IQ averaged $0.35 per share. GAAP EPS of $0.21 for Q3 were 45% lower than the prior-year quarter's $0.38 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 53.2%, 290 basis points worse than the prior-year quarter. Operating margin was 8.3%, 710 basis points worse than the prior-year quarter. Net margin was 6.0%, 390 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $82.6 million. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $282.8 million. The average EPS estimate is $1.57.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 371 members out of 395 rating the stock outperform, and 24 members rating it underperform. Among 130 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 121 give FARO Technologies a green thumbs-up, and nine 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 $44.67.
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