Cognex Earnings: Here’s Why Investors Don’t Like These Results

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. Shares are down 0.5%.

Cognex Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 15.56% to $0.38 in the quarter versus EPS of $0.45 in the year-earlier quarter.

Revenue: Rose 2.57% to $86.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cognex Corp. reported adjusted EPS income of $0.38 per share. By that measure, the company beat the mean analyst estimate of $0.37. It beat the average revenue estimate of $85.3 million.

Quoting Management: “We performed well in the second quarter,” said Robert J. Willett, Chief Executive Officer of Cognex. “Revenue grew year-on-year due to strong execution in ID products and in China, two areas of strategic focus. More importantly, the rate of growth appears to be accelerating, which we believe is as an indication that our investments in new products and our sales channel are paying off. Profitability was lower year-on-year because of these investments but we expect to see margins expand in the second half of 2013.”

Key Stats (on next page)…

Revenue increased 6.94% from $80.89 million in the previous quarter. EPS increased 8.57% from $0.35 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.46 to a profit $0.42. For the current year, the average estimate has moved down from a profit of $1.70 to a profit of $1.63 over the last ninety days.

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