FARO Earnings Prediction
The chart below shows how FARO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, FARO sees a +2.62% change in stock price 10 days leading up to the earnings, and a +3.82% change 10 days following the report. On the earnings day itself, the stock moves by +0.13%. This data can give you a slight idea of what to expect for the next quarter's release.
FARO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
82.56M
-4.90%
0.58%
Gross Margin
55.69%
16.02%
2.07%
Operating Margin
2.62%
150.68%
-9.03%
Net Margin
-0.35%
-96.53%
-45.31%
EPS
-0.01
-97.83%
-66.67%
No Data Available
FARO Earnings Analysis
Faro Technologies Inc Corporation (FARO.O) Earnings Conference Call
Positive
Gross Margin Expansion: 1. Strong Gross Margin Expansion: Non-GAAP gross margin reached 56.1%, an increase of 730 basis points year-over-year and 110 basis points sequentially, marking the highest level since 2019.
Consistent EPS Outperformance: 2. Positive Non-GAAP EPS: The company reported a non-GAAP EPS of $0.21, exceeding the high end of guidance and representing the sixth consecutive quarter of surpassing expectations.
Adjusted EBITDA Performance: 3. Consistent Adjusted EBITDA Growth: Adjusted EBITDA was $8.9 million, or 10.7% of sales, contributing to a year-to-date total of $22.9 million and $36 million over the trailing twelve months.
Shareholder Value Enhancement: 4. Share Repurchase Program: FARO repurchased $10 million of its outstanding shares during the quarter, reflecting a commitment to returning value to shareholders.
Operational Cash Flow Improvement: 5. Operational Efficiency: The company achieved positive operating cash flow for the fourth consecutive quarter, demonstrating improved operational efficiency and financial stability.
Negative
Third Quarter Revenue Decline: Third quarter revenue of $82.6 million was down 5% versus prior year, with the Americas and European regions down 2% and 1%, respectively, and a 17% decline in the Asia Pacific region due to weakness in China.
Hardware Revenue Decline: Third quarter hardware revenue decreased by 10% year-over-year, while software revenue remained flat and service revenue increased by 6%, indicating a lack of growth in core hardware sales.
Net Loss vs. Non-GAAP Income: GAAP net loss was $300,000 or $0.02 per share, contrasting with a non-GAAP net income of $4 million or $0.21 per share, highlighting ongoing financial challenges despite some operational improvements.
Liquidity Decline Analysis: Cash and short-term investment balance at the end of the quarter was $88.9 million, down $9 million sequentially, indicating a decline in liquidity and financial flexibility.
Restructuring Plan Costs: The company expects to incur $6 million to $9 million in cash charges due to a restructuring plan aimed at improving operating performance, which reflects ongoing challenges in managing costs and resources.
FARO FAQs
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FARO Earning Call Sentiment
FARO Technologies, Inc. (FARO) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
FARO.O
-4.2%Positive
The earnings call reflects mixed signals: strong gross margin improvements and a positive EPS guidance, but a decline in revenue and demand in Asia, particularly China, is concerning. The restructuring plan and share repurchase are positive, but the uncertain macro environment and competitive pressures temper enthusiasm. Analysts expressed caution, reflecting a neutral sentiment overall.
