Faro Surges After Distributor Purchase Bolsters Revenue
Faro Technologies Inc. (FARO), a maker of three-dimensional scanners used in everything from car design to forensic investigations, surged after sales topped estimates, aided by a large order for surveying tools.
The shares rose 18 percent to $42.35 at the close in New York for the biggest gain in two years, and have advanced 19 percent this year, compared with a 6.9 percent climb for the Standard & Poor’s SmallCap 600 Index.
Fourth-quarter sales climbed 4.7 percent to $80.7 million from a year earlier, the Lake Mary, Florida-based company said in a statement yesterday. Analysts on average had projected revenue of $68 million, according to data compiled by Bloomberg. Faro sold more of its Focus 3D scanner than expected after distributor Trimble Navigation Ltd. (TRMB) filled up on inventory, said Richard Eastman, an analyst at Robert W. Baird & Co.
“Faro had better sales than we thought, better orders and better earnings,” Eastman said in an interview today. He has a neutral rating on the stock and a $39 target price.
Net income declined to $7.84 million, or 46 cents a share, from $9.47 million, or 56 cents, a year earlier. That exceeded analysts’ average estimate of $5.26 million, or 31 cents a share.
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