Monday, February 25, 2013

FARO Technologies Earnings Up Next

FARO Technologies (Nasdaq: FARO  ) is expected to report Q4 earnings on Feb. 27. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict FARO Technologies's revenues will wither -11.8% and EPS will decrease -44.6%.

The average estimate for revenue is $68.0 million. On the bottom line, the average EPS estimate is $0.31.

Revenue details
Last quarter, FARO Technologies booked revenue of $60.7 million. 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 details
Last quarter, EPS came in at $0.21. 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.

Recent performance
For the preceding 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.

Looking ahead

The full year's average estimate for revenue is $260.7 million. The average EPS estimate is $1.20.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 368 members out of 392 rating the stock outperform, and 24 members rating it underperform. Among 128 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 121 give FARO Technologies a green thumbs-up, and seven 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 $44.67.

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