The Gory Details on FARO Technologies's Double Miss

Just the facts, Fool.

Seth Jayson
Seth Jayson
May 1, 2013 at 12:00AM
Other

FARO Technologies (Nasdaq: FARO) reported earnings on April 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 30 (Q1), FARO Technologies missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue was unchanged. GAAP earnings per share contracted significantly.

Margins dropped across the board.

Revenue details
FARO Technologies reported revenue of $65.4 million. The five analysts polled by S&P Capital IQ predicted revenue of $67.6 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 details
EPS came in at $0.27. The three earnings estimates compiled by S&P Capital IQ averaged $0.30 per share. GAAP EPS of $0.27 for Q1 were 31% lower than the prior-year quarter's $0.39 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 56.3%, 70 basis points worse than the prior-year quarter. Operating margin was 8.7%, 420 basis points worse than the prior-year quarter. Net margin was 7.0%, 330 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $73.8 million. On the bottom line, the average EPS estimate is $0.39.

Next year's average estimate for revenue is $301.8 million. The average EPS estimate is $1.66.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 366 members out of 390 rating the stock outperform, and 24 members rating it underperform. Among 121 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 115 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 $42.80.

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