uploads/2015/11/cgnx-pm.jpg

Cognex’s Income and EPS Rose in 3Q15

By

Updated

Cognex’s price movement

Cognex (CGNX) has a market cap of $3.3 billion. Cognex’s YTD (year-to-date) price movement was a mix of ups and downs in 2015. After the 3Q15 earnings report, CGNX rose by 1.1% to close at $38.00 per share on November 2, 2015. The price movement on a weekly, monthly, and YTD basis is 4.5%, 7.4%, and -7.7%, respectively.

The stock has broken the support of its 20-day, 50-day, and 200-day moving averages in 2015. Currently, it’s trading at 6.0% above its 20-day moving average, 6.7% above its 50-day moving average, and -11.8% below its 200-day moving average.

The Robo Global Robotics and Automation ETF (ROBO) invests 1.7% of its holdings in Cognex. The ETF tracks a global index of companies involved in robotics and automation. The YTD price movement of ROBO is -7.0% as of October 30, 2015.

The market caps of Cognex’s competitors (CGNX) are as follows:

  • AMETEK (AME) — $13.4 billion
  • KLA-Tencor (KLAC) — $10.4 billion
  • Zebra Technologies (ZBRA) — $4.1 billion
  • MKS Instruments (MKSI) — $1.9 billion
Article continues below advertisement

Cognex’s performance in 3Q15

The company reported net revenue of $107.6 million in 3Q15, a fall of 25.2% when compared to 2Q15 net revenue of $143.8 million. The cost of revenue as a percentage of revenue has risen by 14.3% in 3Q15 on a quarterly basis. The net income and EPS (earnings per share) rose to $104.1 million and $1.19 per share, respectively, in 3Q15, as compared to the net income and EPS of $43.7 million and $0.49 per share, respectively, in 2Q15. The company’s cash and cash equivalents and inventories rose by 14.2% and 1.1%, respectively, in 3Q15.

Some of Cognex’s 3Q15 highlights include:

  • Cognex completed the sale of its Surface Inspection Systems Division (or SISD) to AMETEK for $160 million in cash, subject to customary working capital and other purchase price adjustments.
  • Cognex and Microscan Systems have announced a settlement of all outstanding litigation between the parties. This settlement includes a patent cross-license agreement that allows both companies to continue producing current models of handheld barcode readers.
  • The company has declared a quarterly cash dividend of $0.07 per share on Cognex’s common stock.
  • The company authorized the purchase of up to $100 million of Cognex common stock in the open market transaction.

The company has projected its sales to be in the range of $94 million to $97 million for 4Q15.

About Cognex

Cognex provides vision systems, vision software, vision sensors, and surface inspection systems used in manufacturing automation.

Advertisement

More From Market Realist