NASDAQ$FARO

FARO Technologies Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

FARO's financial performance declined due to the COVID-19 pandemic, but strategic initiatives and cost control measures helped to beat non-GAAP operating expense objectives ahead of schedule.

FARO reported a decrease in total sales and new order bookings for Q2 2020 compared to Q2 2019, primarily due to end market demand softness related to the COVID-19 pandemic. Despite the challenges, the company beat its non-GAAP operating expense objective six months earlier than expected.

  • Total sales were $60.6 million, compared to $93.5 million in Q2 2019.
  • New order bookings decreased to $61.4 million from $106.0 million in Q2 2019.
  • Gross margin was 47.7%, down from 54.3% in the same period last year.
  • Net loss was $8.9 million, or $0.50 per share, compared to a net loss of $6.4 million, or $0.37 per share, in Q2 2019.

Headline financials

Total Revenue

$60.6M

Previous: $93.5M-35.2%
EPS (adj)

-$0.36

Previous: $0.14-357.1%
Capital Expenditures

$776K

Previous: $2.15M-63.9%
Free Cash Flow

-$1.03M

Previous: $9.78M-110.5%
Net Income

-$8.93M

Previous: -$6.41M-39.5%
Operating Income

-$12M

Previous: -$4.89M-144.5%
Gross Profit

$28.9M

Previous: $52.3M-44.8%
Cash & Equivalents

$174M

Previous: $121M+44.0%
Total Assets

$453M

Previous: $523M-13.4%
Stock-Based Comp

$2.17M

Previous: $2.75M-21.3%

Revenue & EPS history

FARO · Revenue · Quarterly

$60.6M

Q2 2020-35.2%vs Q2 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

FARO · $60.6M total across 2 segments · Q2 2020

  • Product Sales
    $42.3M
  • Service Sales
    $18.3M

Forward guidance

FARO anticipates a meaningful increase in growth and profitability in the years ahead, though the timing of recovery is uncertain due to the discretionary capital nature of its markets.

Tailwinds

  • Revitalized sales organization has embraced the new reality of a virtual sales model.
  • Virtual sales model is expected to continue to enable sales efficiencies when world conditions normalize.
  • Actions being taken are expected to drive a meaningful increase in growth and profitability in the years ahead.
  • Company beat non-GAAP operating expense objective a full six months earlier than expected.
  • Company remained debt-free.

Headwinds

  • End market demand softness related to the COVID-19 pandemic.
  • Discretionary capital nature of the markets limits visibility towards the timing of a recovery.
  • Total sales decreased compared to the same quarter last year.
  • New order bookings decreased compared to the same quarter last year.
  • Gross margin decreased compared to the same period last year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 6 quarterly earnings reports

Historical avg

+1.8%

Avg return

Earnings day

+19.0%

Avg return

5 days after

+17.2%

Avg return

30 days after

56%

35 / 62 earnings

Positive

+41.4%

Q3 2024

Best reaction

-42.7%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025
Q2 2025
Q1 2025+34.7%+34.5%+34.9%
Q4 2024+17.3%+17.9%+4.9%
Q3 2024+41.4%+53.9%+46.9%
Q2 2024+7.1%+9.3%+18.1%
Q1 2024-2.1%-2.8%-0.4%
Q4 2023+2.8%+1.1%-1.2%
Q3 2023+13.5%
Q2 2023+17.0%
Q1 2023-42.7%
Q4 2022+3.1%
Q3 2022+1.7%
Q2 2022+10.3%
Q1 2022-23.0%
Q4 2021-7.1%
Q3 2021-0.1%
Q2 2021+1.3%
Q1 2021-7.8%
Q4 2020+12.9%
Q3 2020-2.7%
Q2 2020-4.2%
Q1 2020+13.0%
Q4 2019+14.0%
Q3 2019+0.4%
Q2 2019-1.1%
Q1 2019-2.2%
Q4 2018-7.2%
Q3 2018-8.7%
Q2 2018+17.2%
Q1 2018-15.8%
Q4 2017+16.2%
Q3 2017+19.2%
Q2 2017-6.2%
Q1 2017-5.8%
Q4 2016-6.5%
Q3 2016-8.9%
Q2 2016-9.5%
Q1 2016+13.4%
Q4 2015+14.5%
Q3 2015-27.9%
Q2 2015+15.3%
Q1 2015-5.6%
Q4 2014+2.2%
Q3 2014+7.2%
Q2 2014+15.0%
Q1 2014-17.3%
Q4 2013+2.1%
Q3 2013+11.8%
Q2 2013-1.5%
Q1 2013-11.7%
Q4 2012+21.3%
Q3 2012-18.0%
Q2 2012-23.7%
Q1 2012+5.1%
Q4 2011+0.6%
Q4 2009+0.6%
Q3 2011+12.6%
Q3 2010+12.6%
Q2 2010-9.2%
Q2 2011-9.2%
Q4 2010+7.3%
Q1 2010+7.3%
Q1 2011+7.3%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro