The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cognex beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share contracted significantly.
Gross margins grew, operating margins dropped, net margins dropped.
Cognex recorded revenue of $82.2 million. The four analysts polled by S&P Capital IQ expected sales of $79.5 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.40. The four earnings estimates compiled by S&P Capital IQ predicted $0.38 per share. GAAP EPS of $0.37 for Q4 were 16% lower than the prior-year quarter's $0.44 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 75.2%, 40 basis points better than the prior-year quarter. Operating margin was 25.0%, 60 basis points worse than the prior-year quarter. Net margin was 19.8%, 290 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $78.8 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $349.6 million. The average EPS estimate is $1.78.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 277 members out of 306 rating the stock outperform, and 29 members rating it underperform. Among 93 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 81 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 $37.00.
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