Needham & Company Reiterates a 'Buy' on Faro Technologies (FARO); Upside Q3 EPS Surprise Offers Glimpse Of Strong Operating Leverage Story Beginning To Unfold

Needham & Company reiterates a 'Buy' on Faro Technologies (NASDAQ: FARO) price target raised from $50 to $52.

Needham analyst says, "FARO provided a glimpse of the strong operating leverage story that we see unfolding, as Q3 operating margins reached their highest level in over six years. EPS came in 30% above Street expectations on 8% upside to consensus revenues. While the company’s Focus scanner was a driving force in the strong quarterly showing, we believe the core arm business
also registered very healthy y/o/y growth. Bookings rose 29% y/o/y, with strong growth registered across FARO’s three major geographic regions. Given the strong momentum, we are raising our Q4 and 2012 estimates. FARO remains one of the top growth names in our coverage universe."

"We are increasing our Q4 EPS estimate to $0.45 from $0.44 on revenues of $70M (up 20% y/o/y). We are raising our 2012 EPS estimate to $1.82 from $1.78 on revenues of $297M."

For more ratings news on Faro Technologies click here and for the rating history of Faro Technologies click here.

Shares of Faro Technologies closed at $44.76 yesterday.

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