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 grew. GAAP earnings per share dropped significantly.
Margins shrank across the board.
FARO Technologies notched revenue of $80.7 million. The five analysts polled by S&P Capital IQ anticipated sales of $68.0 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.46. The three earnings estimates compiled by S&P Capital IQ predicted $0.31 per share. GAAP EPS of $0.46 for Q4 were 18% lower than the prior-year quarter's $0.56 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 53.4%, 310 basis points worse than the prior-year quarter. Operating margin was 13.9%, 230 basis points worse than the prior-year quarter. Net margin was 9.7%, 260 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $62.4 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $282.9 million. The average EPS estimate is $1.49.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 369 members out of 393 rating the stock outperform, and 24 members rating it underperform. Among 128 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 120 give FARO Technologies a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on FARO Technologies is hold, with an average price target of $37.60.
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