Stock Monitor: ESCO Technologies Post Earnings Reporting
LONDON, UK / ACCESSWIRE / December 04, 2017 / Active-Investors free earnings report on Cognex Corp. (NASDAQ: CGNX) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/'symbol=CGNX. The Company reported its third quarter fiscal 2017 operating results on October 30, 2017. The maker of barcode readers and machine vision sensors surpassed revenue and earnings expectations, and also provided guidance for the upcoming quarter. Register today and get free access to our complimentary member's area where many more reports are available:
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Active-Investors.com is currently working on the research report for ESCO Technologies Inc. (NYSE: ESE), which also belongs to the Technology sector as the Company Cognex. Do not miss out and become a member today for free to access this upcoming report at:
www.active-investors.com/registration-sg/'symbol=ESE
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Cognex most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:
www.active-investors.com/registration-sg/'symbol=CGNX
Earnings Highlights and Summary
Cognex's revenue soared 76% to $259.74 million for Q3 2017 compared to $172.90 million in Q3 2016. The Company's revenue from the consumer electronics industry was a substantial contributor to the revenue growth. Outside of electronics, revenue growth was strong in all geographic regions and in many industries, including the automotive and the logistics industries. Cognex's revenue numbers topped analysts' estimates of $256.8 million.
For Q3 2017, Cognex's gross margin was 76% compared to 78% for Q3 2016. The Company noted that higher revenue from a material customer was partially dilutive to the overall gross margin. For the reported quarter, Research, Development, & Engineering (RD&E) expenses increased 40% on a y-o-y basis as Cognex continued to invest in both current and new products. Cognex's investment and other income were $2.03 million in Q3 2017 compared to $2.42 million in Q3 2016.
Cognex reported a net income from continuing operations of $102.35 million, or $1.14 per diluted share, compared to a net income of $53.68 million, or $0.61 per diluted share, in Q3 2016; reflecting a growth of 91% and 87%, respectively. The Company's non-GAAP income totaled $1.11 per share for the reported quarter compared to $0.62 in the year earlier same quarter, exceeding Wall Street's expectations of $1.05 per share.
Balance Sheet Highlights
As of October 01, 2017, Cognex had a strong financial position with $771 million in cash and investments and no debt. The Company's cash and investments increased by $26 million from $745.17 million at the end of 2016, primarily as the result of $140 million in cash generated from operations, and $45 million in cash received from the exercise of employee stock options.
The Company's reported quarter cash outflows included $99 million to repurchase 1.1 million shares of Cognex's common stock; $26 million for recent acquisitions; $21 million in dividends paid to shareholders; and $20 million for capital expenditure. Cognex intends to continue to repurchase shares of its common stock in Q4 2017, subject to market conditions and other relevant factors.
Cognex's accounts receivable as of October 01, 2017, increased by 120% to $121.98 million from the end of 2016, due to the substantial revenue growth in Q3 2017. As of October 01, 2017, the Company's unbilled revenue of $52 million represented revenue that Cognex expects to invoice largely in the upcoming quarter. The Company's inventories increased by 78% to $48.06 million from the end of 2016, in order to support new product introductions and Cognex's substantially higher levels of business.
Financial Outlook
For Q4 2017, Cognex is forecasting revenue to be between $170 million and $180 million, representing an expected growth exceeding 30% on a y-o-y basis. The Company's gross margin is expected to be in the mid-to-high 70% range for the upcoming quarter.
Stock Performance Snapshot
December 01, 2017 - At Friday's closing bell, Cognex's stock was marginally down 0.06%, ending the trading session at $138.49.
Volume traded for the day: 1.28 million shares, which was above the 3-month average volume of 859.66 thousand shares.
Stock performance in the last month - up 10.83%; previous three-month period - up 27.84%; past twelve-month period - up 134.41%; and year-to-date - up 117.68%
After last Friday's close, Cognex's market cap was at $11.76 billion.
Price to Earnings (P/E) ratio was at 51.03.
The stock has a dividend yield of 0.26%.
The stock is part of the Technology sector, categorized under the Scientific & Technical Instruments industry.
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