Faro Technologies (FARO) Shares Down 13.2% After Earnings Miss

Faro Technologies (NASDAQ:FARO) shares dropped 13.2% during trading on Thursday following a weaker than expected earnings announcement. The company traded as low as $48.17 and last traded at $52.65. Approximately 546,453 shares traded hands during trading, an increase of 461% from the average daily volume of 97,464 shares. The stock had previously closed at $60.65.

The scientific and technical instruments company reported $0.03 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.08 by ($0.05). The business had revenue of $92.83 million for the quarter, compared to analyst estimates of $92.92 million. Faro Technologies had a positive return on equity of 1.39% and a negative net margin of 4.02%. Faro Technologies’s quarterly revenue was up 13.8% compared to the same quarter last year. During the same quarter last year, the company earned ($0.09) earnings per share.

FARO has been the topic of a number of research reports. Zacks Investment Research upgraded shares of Faro Technologies from a “hold” rating to a “strong-buy” rating and set a $54.00 target price on the stock in a report on Monday, January 1st. BidaskClub upgraded shares of Faro Technologies from a “sell” rating to a “hold” rating in a report on Tuesday, January 9th. Canaccord Genuity reiterated a “buy” rating and set a $66.00 target price on shares of Faro Technologies in a report on Thursday, February 22nd. Craig Hallum reiterated a “buy” rating and set a $68.00 target price (up from $60.00) on shares of Faro Technologies in a report on Friday, February 23rd. Finally, Needham & Company LLC increased their target price on shares of Faro Technologies to $65.00 and gave the stock a “buy” rating in a report on Friday, February 23rd. Four research analysts have rated the stock with a hold rating and five have given a buy rating to the company. Faro Technologies presently has an average rating of “Buy” and an average price target of $58.67.

In other news, SVP Jody Storm Gale sold 10,666 shares of the firm’s stock in a transaction on Friday, March 9th. The shares were sold at an average price of $59.77, for a total value of $637,506.82. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Simon Raab sold 11,700 shares of the firm’s stock in a transaction on Friday, March 16th. The shares were sold at an average price of $59.93, for a total transaction of $701,181.00. Following the completion of the sale, the insider now owns 38,478 shares in the company, valued at $2,305,986.54. The disclosure for this sale can be found here. 3.10% of the stock is currently owned by company insiders.

Institutional investors and hedge funds have recently made changes to their positions in the company. Goldman Sachs Group Inc. raised its holdings in shares of Faro Technologies by 75.7% in the 4th quarter. Goldman Sachs Group Inc. now owns 47,093 shares of the scientific and technical instruments company’s stock valued at $2,213,000 after purchasing an additional 20,295 shares in the last quarter. Princeton Capital Management LLC acquired a new stake in shares of Faro Technologies in the 4th quarter valued at $1,767,000. ARK Investment Management LLC raised its holdings in shares of Faro Technologies by 27.9% in the 4th quarter. ARK Investment Management LLC now owns 15,397 shares of the scientific and technical instruments company’s stock valued at $724,000 after purchasing an additional 3,362 shares in the last quarter. Pier Capital LLC acquired a new stake in shares of Faro Technologies in the 4th quarter valued at $5,117,000. Finally, Teacher Retirement System of Texas acquired a new stake in shares of Faro Technologies in the 4th quarter valued at $272,000. Institutional investors and hedge funds own 92.58% of the company’s stock.

The firm has a market cap of $1,059.54, a price-to-earnings ratio of 181.55 and a beta of 1.43.

About Faro Technologies

FARO Technologies, Inc designs, develops, manufactures, markets, and supports software driven, three-dimensional (3D) measurement, imaging, and realization systems. The company offers FaroArm, a combination of six or seven-axis, articulated measurement arm, a computer, and CAM2 software programs; and FARO ScanArm, a FaroArm equipped with a hard probe and non-contact laser line probe to measure products.

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