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What: Shares of Cognex (NASDAQ:CGNX) have popped today by as high as 18% after the company reported earnings.

So what: Revenue in the second quarter hit a record of $86.5 million, which resulted in non-GAAP earnings per share of $0.42. Both top- and bottom-line figures look good relative to the Street's forecasts of $85.3 million in revenue and $0.37 per share in adjusted profit. CEO Robert J. Willett said the company's growth rate appears to be accelerating, and predicts margin expansion in the second half of the year.

Now what: Willett also said that Cognex received several large orders in the second quarter that will be delivered in the third quarter, including ID products. Third-quarter guidance calls for revenue in the range of $88 million to $91 million, with gross margin in the mid-70% range. Investors were expecting just $87.5 million in sales next quarter. Needham boosted its price target from $56 to $58, citing growing momentum.

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Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool recommends Cognex. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.