Cognex Could Time Travel Back To A Lower Valuation
Cognex: A Great Company With A Hefty Price
Tue, Aug. 2, 3:02 PM
Tue, Aug. 2, 2:13 PM
- Cognex (CGNX +12.4%) posted healthy Q2 results and declared a $0.075 dividend after market close yesterday.
- Needham & Company has subsequently reissued a Buy rating while raising its price target to $55 from $42 (current price $50.74). Firm analyst James Ricchiuti cites revenue above the high end of guidance, upside Q3 guidance, confidence in the company's consumer electronics business, strong logistics demand and continued automotive strength in his outlook.
- Additionally notes absence of Q4 guidance (quarter-out guidance is usually provided) and expects upcoming seasonal logistics and consumer electronics weakness. Maintains the company has further growth potential but would not rule out a near-term share price stabilization given the sharp upward movement since yesterday's close.
- Earnings call transcript
- Press release
Tue, Aug. 2, 9:17 AM
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Mon, Aug. 1, 5:37 PM
Mon, Aug. 1, 4:11 PM
Tue, Jun. 14, 1:07 PM
- "While we continue to expect CGNX to benefit from growing deployment of machine vision in factory automation and logistics, we do not see catalysts for substantial upside to our estimates for the remainder of 2016," writes Canaccord's Bobby Burleson, downgrading Cognex (CGNX -4.5%) to Hold. His target remains at $45.
- Burleson: "With valuation near historical peaks, the stock is likely to be range bound the balance of the year. Signs of meaningful traction in mobile terminals (new product released last quarter), combined with a more diversified base of large orders, especially for consumer electronics, could make us more constructive on 2017 estimates and prompt us to revisit our rating."
- The industrial machine vision hardware provider is still up 24% YTD. Shares go for 28x a 2017 EPS consensus of $1.48.
Mon, May 2, 5:38 PM
Mon, May 2, 4:37 PM
- Cognex (NASDAQ:CGNX) has moved up 5.8% after hours following its Q1 beat and strong guidance for Q2.
- Revenues fell 5% with lower revenue from consumer electronics, which should be made up in the second quarter.
- The company's guiding to Q2 revenues of $135M-$140M, vs. $129.8M expected, due to some large orders it expects from consumer electronics companies -- which should last into Q3 as well, compared to last year when the majority were recognized in Q2.
- It also expects gross margin in the mid- to high-70% range and effective tax rate of about 18%.
- Research, Development & Engineers expenses were up 21% Y/y with new investments and outsourced engineering, but SG&A expenses fell 4%.
- Conference call to come at 5 p.m. ET.
- Press Release
Thu, Mar. 24, 11:02 AM
- Believing manufacturing capex remains weak and that the just-launched iPhone SE can be manufactured using older equipment, CLSA's Jeremie Carpon has downgraded industrial machine vision system maker Cognex (CGNX -6.7%) to Underperform from Outperform.
- Carpon sees a high risk Cognex won't be able to hit consensus estimates. Shares currently go for 25x a 2017 EPS consensus of $1.47, and remain up 19% from where they traded before Cognex posted a Q4 beat on Feb. 10.
Nov. 18, 2015, 12:25 PM
- "We are upgrading shares of CGNX to BUY from Hold ahead of what we expect to be a resumption of large orders in 2016," writes Canaccord's Bobby Burleson. His target has been hiked by $9 to $42.
- Burleson: "While another negative estimate revision could come for Q1 (we are modeling negative seasonality based on China in contrast with consensus for Q/Q growth), we believe large orders should lead to subsequent positive revisions in Q2 as logistics and consumer electronics projects resume following delays in 2015. Valuation looks attractive on historical basis..."
- The industrial machine vision hardware maker sold off in early November on account of the soft Q4 guidance (blamed on weak industrial demand in various markets) provided with a Q3 EPS beat. In addition to Cognex, Canaccord has upgraded 3D measurement/imaging hardware maker FARO Technologies.
Nov. 2, 2015, 5:20 PM
- Though Cognex (NASDAQ:CGNX) beat Q3 EPS estimates and posted in-line revenue, it's guiding for Q4 revenue of $94M-$97M, well below a $111.3M consensus. The industrial machine vision hardware maker expects sales to be "negatively impacted by deterioration in the industrial markets the company serves."
- Q3 sales fell 30% Y/Y (demand from consumer electronics clients was "substantially lower"), and Q4 guidance implies a 19% drop at the midpoint. Gross margin was 76%, down from 79% in Q2 and flat Y/Y; GM is expected to be in the mid-70s in Q4.
- Boosting Q3 EPS: SG&A spend fell 18% Y/Y and R&D fell 3% (job cuts), and $90.5M was spent to buy back 2.5M shares at an average price of $36.41. Cognex ended Q3 with $593M in cash/investments, and no debt.
- Shares have fallen to $35.75 after hours. The 52-week low is $32.35.
- Q3 results, PR
Aug. 4, 2015, 12:45 PM
Aug. 4, 2015, 9:20 AM
Aug. 3, 2015, 6:18 PM
- Cognex (NASDAQ:CGNX) expects Q3 revenue of $106M-$109M. Consensus, which doesn't fully reflect the sale of Cognex's surface inspection system unit (SISD - officially sold on July 6), is at $144M. However, with SISD's Q2 revenue only totaling $11.2M, the division's absence doesn't fully account for the shortfall.
- The industrial machine vision hardware vendor notes "current lower spending trends in the Americas" are expected to continue in Q3. It also mentions "large customer deployments" that occurred in Q2 and in Q3 2014 aren't expected to repeat in Q3. CEO Robert Willett: "Based upon what we are hearing from our customers, we expect to see fewer large orders in the second half of this year."
- In an attempt to soften the blow, Cognex has added $100M to its buyback authorization, raising its available funds to $106.5M. $35.8M was spent on buybacks in Q2.
- Q2 revenue ($155M) was in-line with prior guidance of $152M-$157M when including SISD. Revenue from continuing ops was $143.8M.
- Shares have tumbled to $36.00 AH.
- Q2 results, PR
Aug. 3, 2015, 5:37 PM
Apr. 23, 2015, 3:01 PM
- Citing valuation, Oppenheimer has downgraded Cognex (NASDAQ:CGNX) to Market Perform ahead of its May 4 Q1 report.
- The downgrade comes a day after the industrial machine vision hardware maker closed less than $2 below a 52-week high of $52.48. After rallying in February following a Q4 beat, shares trade for 35x 2015E EPS.
Cognex Corp. provides vision systems, vision software, vision sensors and surface inspection systems used in manufacturing automation. It also provides industrial ID readers. The company operates through Modular Vision Systems Division. The Modular Vision Systems Division develops, manufactures,... More
Industry: Scientific & Technical Instruments
Country: United States