FARO - FARO Technologies: Uncertainty Persists

2024-04-30 09:28:41 ET

Summary

• FARO Technologies' Q4 2023 results were relatively weak, with a continued lack of software revenue growth a particular concern.
• FARO is facing a soft demand environment due to high interest rates and macro uncertainty, but the company's problems extend beyond this.
• FARO is trying to strengthen its competitive position by expanding its software offerings, but there has been little sign of success so far.
• While FARO may appear attractively priced, there is little reason to expect the stock to rerate higher in the near term.

FARO Technologies' ( FARO ) Q4 2023 results were unsurprisingly soft given the difficult macro environment. Of particular concern is the company's continued weak software revenue growth. On a more positive note, cost cutting efforts are paying off, with both cash flows and operating profits improving materially....

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