Cognex Beats Again, Shares Jump 10%

Cognex Corporation CGNX released Q2 results after market close on Monday. Earnings per share came in above Wall Street consensus expectations.

Cognex reported EPS of $0.49 and revenues of $147.27 million. Analyst consensus had an EPS estimate of $0.44 and revenues of $137.91 million.

It has become uncommon for Cognex to beat earnings estimates as the company has only missed two quarters out of the last 12.

"When we gave our guidance in May, we expected a good quarter. We are now very pleased to report we surpassed that guidance and had an exceptional quarter," said Robert J. Willett, Chief Executive Officer of Cognex. "Business in our three largest industries—consumer electronics, automotive and logistics—was higher than anticipated. We now expect to see revenue from consumer electronics grow on an annual basis."

Management expected Q3 revenue to be between $142 million and $147 million due to large orders expected from consumer electronics customers and anticipated growth in other industries including logistics.

Gross margin was expected to be between the mid and high 70 percent range. Additionally, operating expenses were expected to be flat on a sequential basis and the effective tax rate was expected at 18 percent before discrete tax items.

At time of writing, Cognex traded at $50.10, up 10.5 percent.