The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Cognex met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped.
Margins contracted across the board.
Cognex logged revenue of $80.1 million. The four analysts polled by S&P Capital IQ hoped for revenue of $79.7 million on the same basis. GAAP reported sales were 0.0% lower than the prior-year quarter's $80.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.43. The three earnings estimates compiled by S&P Capital IQ predicted $0.39 per share. GAAP EPS of $0.41 for Q3 were 2.4% lower than the prior-year quarter's $0.42 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 75.6%, 70 basis points worse than the prior-year quarter. Operating margin was 27.2%, 80 basis points worse than the prior-year quarter. Net margin was 22.2%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $81.6 million. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $323.3 million. The average EPS estimate is $1.64.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 284 members out of 312 rating the stock outperform, and 28 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 70 give Cognex a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cognex is hold, with an average price target of $37.50.
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