Cognex Corporation (NASDAQ:CGNX)
Cognex Corporation, a machine vision technology company yesterday reported their third quarter 2016 financial results. Cognex reported third quarter adjusted earnings of $0.52 per share which beat analyst expectations of $0.48 per share. Cognex reported third quarter revenues of $148 million which beat analyst expectations of $145.8 million.
Cognex Corporation Chairman & CEO Comments
“What an outstanding quarter!” exclaimed Dr. Robert J. Shillman, Chairman of Cognex.
We reported the highest net income and earnings per share from continuing operations for any quarter in our company’s 35-year history. Our substantial profit was due to both the strong revenue and gross margin that we reported for the quarter and a lower effective tax rate.
Chief Executive Officer of Cognex Robert J. Willett said,
Our third quarter performance was impressive...Revenue grew significantly year-on-year as large opportunities drove growth well above our 20% long-term target for factory automation. Operating margin expanded to 37% compared to 26% in the third quarter a year ago, reflecting the substantial leverage that incremental revenue has on our profitability. And, earnings per share were significantly higher than consensus expectations even when you exclude the $0.07 per share tax benefit from stock option exercises that we recognized during the quarter. We are pleased to see our hard work deliver such great results. Business Wire
CGNX Technical Analysis
CGNX opened trading yesterday at $51.57, which was up from the previous day’s trading close of $51.47. CGNX closed trading yesterday at $51.60 and spiked up after market to $55.78, equivalent to a 8% increase from the closing price. Taking a look at the daily chart we can see that we are in unchartered territory as CGNX is currently trading at all time highs. Taking a closer look at the daily chart we can see that CGNX had been in an overall upward trend dating back to May 2nd when it traded at $35.21.
CGNX has a float of 80.90 million shares and traded 1.17 times the normal daily trading volume on Monday. For trading purposes, I would like to see CGNX open trading on Tuesday above $54.40 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.40 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
Cognex Corporation provides machine vision products that capture and analyze visual information in order to automate tasks primarily in manufacturing processes. The company develops, manufactures, and markets machine vision products that are used to automate the manufacture and tracking of discrete items, such as mobile phones, aspirin bottles, and automobile tires by locating, identifying, inspecting, and measuring them during the manufacturing or distribution process.
Its products include VisionPro, a software suite that provides various vision tools for programming; displacement sensors with vision software for use in three-dimensional application; In-Sight vision systems that perform various vision tasks, including part location, identification, measurement, assembly verification, and robotic guidance; Checker vision sensors that perform single-purpose vision task; In-Sight vision sensors; ID products, which are used for reading codes that are applied on discrete items during the manufacturing process, as well as have applications in logistics automation for package sorting and distribution; and DataMan ID readers, as well as barcode scanning software development kits.
The company sells its products through direct sales force, as well as through a network of integration and distribution partners worldwide. Cognex Corporation was founded in 1981 and is headquartered in Natick, Massachusetts.