Cognex Corp CGNX reported a third-quarter FY23 revenue decline of 6% to $197.24 million, beating the consensus of $192.3 million.
Adjusted EPS was $0.16 (-24% YoY), beating the consensus of $0.14.
The gross margin was 72% in Q3 compared to 73% in 3Q22 due to a less favorable product and industry mix.
As of October 1, 2023, Cognex's financial position remained strong, with $846 million in cash and investments and no debt.
Cognex recorded a pre-tax gain of $2.8 million in the quarter related to the June 2022 fire at its primary contract manufacturer.
CEO Robert J. Willett said, " In the third quarter, we grew our served market as we entered two important adjacent markets – the vision sensor market with our In-Sight SnAPP Sensor launch and the optical components market through the acquisition of Moritex. These two initiatives expand our served market size by $1.5 billion, and are expected to represent strong, operating margin accretive growth areas for Cognex."
The company declared a quarterly cash dividend of $0.075 per share, payable on December 1, 2023 to all shareholders of record at the close of business on November 17, 2023. This dividend represents an increase of $0.005 per share, or 7%, over the prior quarter.
Outlook: The company expects Q4 revenues of $175 million-$195 million versus the consensus of $202.8 million, relatively consistent on a sequential basis with Q323, reflecting the challenging business environment that Cognex is currently experiencing.
The adjusted gross margin for Q4 will likely be in the 70% range primarily due to continued operating deleverage and an expected unfavorable revenue mix.
Price Action: CGNX shares are trading higher by 3.66% at $36.22 on the last check Tuesday.
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