Cognex reports solid results thanks to Chinese car companies
Cognex, a leader in machine vision technology that’s positioned right at the center of the trend towards automated vehicles, posted another set of solid quarterly results this week. The company said that its second quarter saw a sharp increase in sales year on year, which more than made up for a weakening in the LED display market.
Cognex’s share price surged by 13% over the past five days
SOURCE: Yahoo Finance
Cognex’s chairman and founder, Robert Shillman, gave a comment that was both upbeat and downplayed. He said: “Our results for Q2 of 2018 were rather good. Revenue was the second highest of any quarter in our company’s 37-year history. And operating margin was at our 30 per cent long-term target.”
The company’s CEO, Robert Willett, was more direct: “We performed well across most end markets, led by logistics and automotive.” In fact, the company’s sales to China have increased by more-than 50% year on year. Speaking about China, Willett was also keen to stress that Cognex was not in immediate danger from the current trade war between China and the U.S. He said:
“Our product we sell in China is manufactured outside of the US, so it's not as if that's necessarily in the first line of fire for any trade stuff that would be going on. We're positive about China. We're very positive about the long-term effects. Our business is doing well there. We don't see any short-term impacts based on what we're reading in the news, [but] we're watching very carefully.”
Dominion holds Cognex in its Global Trends Managed Fund.
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