3D measurement and imaging company FARO (NASDAQ:FARO) will be reporting results tomorrow afternoon. Here’s what to look for.

FARO missed analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $82.09 million, down 6.9% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ earnings estimates but revenue guidance for next quarter missing analysts’ expectations.

Is FARO a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting FARO’s revenue to decline 9% year on year to $78.97 million, a reversal from the 1.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. FARO has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.9% on average.

Looking at FARO’s peers in the inspection instruments segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Itron delivered year-on-year revenue growth of 9.8%, beating analysts’ expectations by 3.2%, and Teledyne reported revenues up 2.9%, topping estimates by 1.9%. Itron’s stock price was unchanged after the results, and Teledyne’s price followed a similar reaction.

Read our full analysis of Itron’s results here and Teledyne’s results here.

Investors in the inspection instruments segment have had steady hands going into earnings, with share prices flat over the last month. FARO is down 3.3% during the same time and is heading into earnings with an average analyst price target of $24.50 (compared to the current share price of $17.51).

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