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Cognex Profitable as Machine Vision Systems Manufacturer Reports Third-Quarter Earnings

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Cognex reported third-quarter revenue of $251.1 million, surpassing analysts’ and internal estimates for the period ending Sept. 27. The reported revenue of the Natick, Mass.-based machine vision systems developer and manufacturer represents a year-over-year increase of 37%.

Cognex additionally reported quarterly earnings per share (EPS) of 49 cents, and non-GAAP EPS of 47 cents. The figures are year-over year increases of 104% and 96%, respectively. Zacks Equity Research had listed the consensus mark for non-GAAP earnings per share at 33 cents.

“Our results for [quarter three] were very good and above our expectations,” said Robert Shillman, founder and chairman of Cognex. “We reported the second-highest quarterly revenue, net income, and earnings per share from continuing operations in our company’s 39-year history. We were also highly profitable — reporting an operating margin of 38% in [quarter three] compared to 24% a year ago — due to the leverage in our business model.”

Cognex projected that its quarterly revenue total would be in the range of $200 million to $220 million. The projection was consistent with the Zacks consensus estimate (ZCE), which expected Cognex to report quarterly revenue of $213.7 million.

In a press release Wednesday, the company cited large-customer deployments in the consumer electronics industry, as well as strong performance in the e-commerce sector of logistics. Revenue from automotive and the broader factory automation market improved on a sequential basis despite an unfavorable business environment.

Zacks Equity Research had predicted strong showings in consumer electronics and the e-commerce market, countering decreased demand, particularly in Europe and the Americas, across the factory automation market.

Cognex on Wednesday also declared a quarterly cash dividend for the third quarter of 6 cents per share, payable to shareholders on Nov. 27. The dividend represents an increase of just over 9% over the dividend paid in the prior quarter.

At the conclusion of the quarter, Cognex reported, the company was positioned with approximately $1 billion in cash and investments and no debt. Cognex generated $159 million in cash from operations, and $91 million from the exercise of stock options through the first nine months of the year.

For quarter four 2020, Cognex expects revenue to be between $190 million and $210 million. That total would represent year-over-year growth, and, the company said, likely be attributable to higher expected revenue from consumer electronics and the e-commerce sector of logistics.

A full financial earnings report is available here.
Oct 2020
machine vision
Interpretation of an image of an object or scene through the use of optical noncontact sensing mechanisms for the purpose of obtaining information and/or controlling machines or processes.
Cognexmachine visionBusinessquarterly earningsfinancialsindustryscannersscanners and detectorsAmericasindustrialfactory

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