Cognex shares on roller coaster ride following Q2 earnings
Shares of Cognex Corp., a Natick-based company that produces machine vision technology systems, industrial barcode readers and other technologies, were down by as much as 25 percent on Tuesday following the release of its quarterly earnings report.
Cognex (Nasdaq: CGNX) missed sales targets for the second quarter and lowered sales estimates for the third quarter, causing a steep decline in the company’s stock price.
Sales for the second quarter were $143.83 million, down by about 8 percent from estimates of $155.25 million. The company’s sales estimates for the third quarter were revised to $107.5 million, down from original estimates of $119.25 million.
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The company’s share price dropped from about $45 on Monday to below $34 on Tuesday. On Wednesday afternoon, the share price was up by about 3.7 percent to $36.31.
Despite missed targets, Cognex CEO Robert Willett said in a conference call with analysts that the quarterly earnings were the “second-highest quarterly results we have ever reported.”
But expectations had to be lowered because some large orders have been delayed until 2016 and customer growth in the Americas is much lower than expected as non-automotive manufacturers pull back on spending, Willett said.
Cognex in June sold one of its business divisions for $160 million in cash. The Cognex division develops and manufactures software-based vision systems used to inspect surfaces of continuously processed materials for flaws and defects, and was sold to Berwyn, Penn.-based AMETEK(NYSE: AME).
The Surface Inspection Systems Division is headquartered in California, and the division’s sales were $60 million in 2014, or 12 percent of Cognex’s total revenue.