Cognex Earnings: Here’s Why Investors are Ambivalent Now

Cognex Corp. (NASDAQ:CGNX) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

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Cognex Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 6.06% to $0.35 in the quarter versus EPS of $0.33 in the year-earlier quarter.

Revenue: Rose 4.09% to $80.89 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cognex Corp. reported adjusted EPS income of $0.35 per share. By that measure, the company beat the mean analyst estimate of $0.33. It beat the average revenue estimate of $79.62 million.

Quoting Management: “What a quarter! We set new first quarter records for revenue, net income and earnings per share,” said Dr. Robert J. Shillman, Chairman of Cognex.
“We are proud of our performance in the first quarter,” said Robert J. Willett, Chief Executive Officer of Cognex. “We reported solid revenue growth year-on-year and were highly profitable while continuing to increase our investments in product development and sales force expansion. More importantly, we introduced innovative new products which we believe will further strengthen our leadership position in the vision market.”

Key Stats (on next page)…

Revenue decreased 1.56% from $82.17 million in the previous quarter. EPS decreased 5.41% from $0.37 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.42 and has not changed. For the current year, the average estimate has moved down from a profit of $1.73 to a profit of $1.7 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)