The 10-second takeaway
For the quarter ended June 29 (Q2), FARO Technologies missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. GAAP earnings per share dropped significantly.
Margins contracted across the board.
FARO Technologies reported revenue of $68.3 million. The four analysts polled by S&P Capital IQ anticipated revenue of $70.6 million on the same basis. GAAP reported sales were 2.3% higher than the prior-year quarter's $66.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.21. The three earnings estimates compiled by S&P Capital IQ predicted $0.29 per share. GAAP EPS of $0.21 for Q2 were 25% lower than the prior-year quarter's $0.28 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 54.0%, 150 basis points worse than the prior-year quarter. Operating margin was 8.0%, 230 basis points worse than the prior-year quarter. Net margin was 5.3%, 180 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $71.2 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $289.9 million. The average EPS estimate is $1.39.
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 120 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 114 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 $37.50.
Looking for alternatives to FARO Technologies? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add FARO Technologies to My Watchlist.