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.
- Add FARO Technologies to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Why FARO Technologies, Inc.'s Stock Got Crushed on Wednesday
Between a big earnings miss, a weak capital spending environment, and a departing CEO, it wasn't a good day for FARO shareholders.
Why FARO Technologies, Inc. Shares Are Crashing Today
Its preliminary results fell well short of expectations.
Why FARO Technologies Shares Popped
Is FARO Technologies' jump meaningful? Or just another movement?