Cognex ( CGNX ) slumps ~14% on missing Q2 estimates , revenue stood at $274.63M, marginally down from previous year quarter, missed estimates by $3.5M.
Revenue from customers in the consumer electronics industry grew significantly Y/Y and Q/Q.
Gross margin was 72% vs. 75% last year.
RD&E expenses increased by 9% from Q2-21 as company incurred higher costs associated with the company’s investment in engineering resources on a year-on-year basis.
$788M in cash and investments and no debt.
Q3 Outlook : Revenue $160-$180M (vs. consensus $293.58M); the decline is mainly due to supply disruption caused by the June fire at the company’s primary contract manufacturing site and lower expected revenue from e-commerce logistics; Gross margin 70%.
CEO, Robert J. Willett commented, “While we reported revenue for Q2 in the middle of our guidance range, we are experiencing disruption in our business today. A large amount of our component inventory was destroyed in a June fire at our primary contract manufacturer’s site. This was particularly disappointing given all our hard work to put us in a strong supply position prior to the fire. We also observe certain customers scaling back spending on new e-commerce fulfillment centers after two years of heavy investment that benefitted Cognex."
Loss from Fire in Q2: primary contract manufacturer experienced a fire at its plant in Indonesia which consisted of gross losses totaling $44.9M for the write-off of company assets that were destroyed or abandoned in the fire less estimated insurance recoveries of $27.5M
Quick look at dividend declaration
Contributor comments on the stock: ' Cognex is a long-term growth player on factory and inspection automation '
Stock has a sell-side rating of Buy with 3.68 score and a Quant rating of Sell with lowest factor grades given to valuation.
SA warns that the stock is at a high risk of performing badly as it is overpriced and has decelerating momentum.
Previously (Aug. 2): Cognex Non-GAAP EPS of $0.41 misses by $0.01, revenue of $274.63M misses by $3.5M
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Cognex dives 14% on guiding Q3 revenue way below consensus figure