Cognex Corporation CGNX reported second-quarter revenue growth of 2% year-over-year to $274.63 million, missing the consensus of $276.59 million. Adjusted EPS was $0.41, missing the consensus of $0.42.
The gross margin declined to 72% compared with 75% in 2Q21. Operating income decreased 29.6% Y/Y to $65.14 million, and margin fell by 1,068 bps to 23.7%.
As of July 3, 2022, Cognex held $788 million in cash and investments and no debt. Year-to-date, Cognex generated $94 million in cash from operations.
The company spent $154 million to repurchase its common stock and paid shareholders $23 million in dividends.
“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.”
“We also observe certain customers scaling back spending on new e-commerce fulfillment centers after two years of heavy investment that benefitted Cognex,” commented Robert J. Willett, Chief Executive Officer of Cognex.
Cognex recorded a non-cash net charge of $17.4 million in 2Q22, which consisted of gross losses totaling $44.9 million, less estimated insurance recoveries of $27.5 million.
3Q22 Outlook: Cognex expects revenue of $160 million and $180 million vs. a consensus of $290.25 million and a gross margin of ~70%.
Price Action: CGNX shares are trading lower by 13.70% at $42.89 during the post-market session on Tuesday.
Image and article originally from www.benzinga.com. Read the original article here.