Machine vision technology company Cognex (NASDAQ: CGNX) will be announcing earnings results this Wednesday after market hours. Here’s what to expect.
Cognex beat analysts’ revenue expectations last quarter, reporting revenues of $268.4 million, up 24.3% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.
Is Cognex a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Cognex’s revenue to grow 17.8% year on year, improving from the 4.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Cognex has a history of exceeding Wall Street’s expectations.
Looking at Cognex’s peers in the tech hardware & electronics segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Mirion delivered year-on-year revenue growth of 19.7%, missing analysts’ expectations by 1%, and Connection reported revenues up 12.4%, topping estimates by 11.3%. Mirion traded down 13.2% following the results while Connection’s stock price was unchanged.
Read our full analysis of Mirion’s results here and Connection’s results here.
There has been positive sentiment among investors in the tech hardware & electronics segment, with share prices up 5.3% on average over the last month. Cognex is down 2.5% during the same time and is heading into earnings with an average analyst price target of $77.21 (compared to the current share price of $67.72).
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