Shares of Cognex (NASDAQ:CGNX) have jumped today, up by 10% as of 12:20 p.m. EDT, after the company reported first-quarter earnings. The machine-vision specialist beat expectations for both the top and bottom lines.
Revenue in the first quarter came in at $167.2 million, ahead of the $154.9 million in sales that Wall Street was looking for. That all translated into net income of $20.5 million, or $0.11 per share on an adjusted basis. The consensus estimate had called for just $0.08 per share in adjusted profits.
"Companies around the world, including ours, are facing significant disruptions in their businesses," CEO Robert Willett said. "While some customers are accelerating activity, notably companies in China and in e-commerce fulfillment, many others are struggling to implement capital spending plans or are putting those investments on hold."
The vision tech company, which provides barcode readers and machine-vision systems for automating manufacturing and distribution operations, said it was maintaining a strong financial position of $845 million in cash and no debt. Cognex has not opted to suspend its share repurchase program like many other companies have in response to the COVID-19 crisis.
The novel coronavirus outbreak has impacted Cognex in different ways, hurting demand within certain industries while boosting it in others. The company is providing "less specific guidance" as a result, calling for revenue and earnings per share to decline in the second quarter on both a sequential and year-over-year basis. Gross margin is expected to be around a mid-70s percentage, and operating expenses should decline by over 10%.