Cognex Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Cognex (NAS: CGNX) popped 14% in intraday trading today after the company issued much better than expected earnings and a bullish outlook.
So what: EPS of $0.45 trounced the $0.37 consensus estimate and rose 18% year over year. Revenue of $83.4 million increased 16% year over year.
Now what: Management cited record revenue in its factory automation market, particularly strong growth in China, and substantial operating leverage for the strong quarter. It expects typical seasonality for the third quarter versus the second quarter, suggesting the strong results will repeat. The earnings release was notably bullish, trumpeting "Fantastic Results" in its headline and stating the company executed well on growth initiatives and foresees good long-term growth potential for machine vision in China.
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At the time this article was published Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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