Cognex beats the Street on revenues and earnings in fourth quarter
Cognex, an American manufacturer of machine vision systems, software, and sensors, reported earnings at the end of last week that beat the Street on top- and bottom-lines. The company, which is an integral part in the trends towards automation and robotics, saw particular success in logistics, where its products found greater purchase in warehouses that continue to automate. Unsurprisingly, investors reacted positively to the news, sending the company’s share price up.
Cognex’s share price has risen by an incredible 33% so far this year!
Source: Yahoo Finance
Here’s the numbers: Cognex reported revenues of $194.29 million – that’s 6% higher than revenues in the comparable quarter last year, and it’s also a strong beat against the Street (which predicted revenues of $184.81 million). The company’s outperformance on earnings wasn’t quite as impressive, but it was a beat nonetheless. For its fourth quarter, Cognex said that earnings came in at 26 cents per share. The Street had expected earnings of 22 cents per share.
In a press release, the company’s chairman, Dr. Robert J. Shillman, said: “For the third year in a row, Cognex reported record revenue, record net income, and record earnings per share, all from continuing operations. Normally, I would say that I am very pleased with this achievement, but our success was partly due to a one-time charge to tax expense in Q4-17 related to the Tax Cuts and Jobs Act. Nevertheless, we were highly profitable in both 2017 and 2018, reporting an operating margin of 27% or more for each of those years.”
The company’s CEO, Robert J. Willett, added: “We are reporting our ninth consecutive year of revenue growth following an exceptional growth year in 2017. We performed well across most end markets. An exception was consumer electronics—our largest industry vertical—where a few large customers in OLED display and smartphone manufacturing scaled back their spending on machine vision after making substantial investments in 2017. Putting those customers aside, revenue from the rest of our business grew by 18% year-on-year. As we enter 2019, lower spending by our customers in China continues to slow our growth rate as it did at the end of 2018. Similar effects are now evident in other markets that we serve, most noticeably in the automotive sector in the Americas.”
Dominion holds Cognex in its Global Trends Managed Fund.
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