Cognex Up 17%: Sees 3Q Rev Up 50% Sequentially On 'Major Customer'

Cognex Corp.

rose sharply Tuesday after the company bested second-quarter estimates and predicted revenue for the current period 17 percent higher than Wall Street expected. Cognex, which provides manufacturing equipment, said second-quarter revenue grew 20 percent from a year earlier to $108.8 million, up 20 percent from the previous quarter. For the current third quarter, Congenx forecast revenue up 50 percent sequentially, to between $165 million and $170 million, including $60 million from "a major customer." Wall Street expected third-quarter revenue of $142 million. Cognex also forecast a gross margin in the "mid-70 percent range," slightly lower than in recent quarters. and a 25 percent increase in operating expense. "Cognex intends to make further investments in growth areas, some of which are not expected to repeat in the second quarter," the company said. In the recent period, Cognex's factory automation segment was the largest revenue contributor, with strong performance for the segment in Europe following a lackluster 2013. Cognex's 76 percent gross margin was flat from a year earlier but down one percent from the first quarter because lower-margin surface inspection systems were a growing part of revenue. The company posted second-quarter earnings of 29 cents a share, versus Wall Street expectations of 22 cents. Shares traded recently at $44.27, up 17 percent.