Latest news with #Cognex
Yahoo
3 hours ago
- Business
- Yahoo
Cognex (NASDAQ:CGNX) Exceeds Q2 Expectations, Stock Soars
Machine vision technology company Cognex (NASDAQ:CGNX) reported revenue ahead of Wall Street's expectations in Q2 CY2025, with sales up 4.1% year on year to $249.1 million. Guidance for next quarter's revenue was optimistic at $255 million at the midpoint, 2.1% above analysts' estimates. Its non-GAAP profit of $0.25 per share was 5.8% above analysts' consensus estimates. Is now the time to buy Cognex? Find out in our full research report. Cognex (CGNX) Q2 CY2025 Highlights: Revenue: $249.1 million vs analyst estimates of $246 million (4.1% year-on-year growth, 1.3% beat) Adjusted EPS: $0.25 vs analyst estimates of $0.24 (5.8% beat) Adjusted EBITDA: $51.68 million vs analyst estimates of $48.75 million (20.7% margin, 6% beat) Revenue Guidance for Q3 CY2025 is $255 million at the midpoint, above analyst estimates of $249.7 million Adjusted EPS guidance for the full year is $0.27 at the midpoint, missing analyst estimates by 69% Operating Margin: 17.4%, up from 16.1% in the same quarter last year Free Cash Flow Margin: 16.2%, up from 9.7% in the same quarter last year Market Capitalization: $5.75 billion Company Overview Founded in 1981 when computer vision was in its infancy, Cognex (NASDAQ:CGNX) develops machine vision systems and software that help manufacturers and logistics companies automate quality inspection and tracking of products. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. With $929.6 million in revenue over the past 12 months, Cognex is a small player in the business services space, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and numerous distribution channels. On the bright side, it can grow faster because it has more room to expand. As you can see below, Cognex grew its sales at a decent 6.2% compounded annual growth rate over the last five years. This shows its offerings generated slightly more demand than the average business services company, a useful starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Cognex's recent performance shows its demand has slowed as its annualized revenue growth of 2% over the last two years was below its five-year trend. This quarter, Cognex reported modest year-on-year revenue growth of 4.1% but beat Wall Street's estimates by 1.3%. Company management is currently guiding for a 8.6% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 8.2% over the next 12 months, an improvement versus the last two years. This projection is commendable and implies its newer products and services will catalyze better top-line performance. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Operating Margin Cognex has been a well-oiled machine over the last five years. It demonstrated elite profitability for a business services business, boasting an average operating margin of 21.8%. Analyzing the trend in its profitability, Cognex's operating margin decreased by 19.1 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. This quarter, Cognex generated an operating margin profit margin of 17.4%, up 1.4 percentage points year on year. This increase was a welcome development and shows it was more efficient. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Cognex's unimpressive 4.8% annual EPS growth over the last five years aligns with its revenue performance. On the bright side, this tells us its incremental sales were profitable. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. Cognex's two-year annual EPS declines of 6.7% were bad and lower than its 2% two-year revenue growth. Diving into the nuances of Cognex's earnings can give us a better understanding of its performance. While we mentioned earlier that Cognex's operating margin expanded this quarter, a two-year view shows its margin has declined by 9.4 percentage points. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; interest expenses and taxes can also affect EPS but don't tell us as much about a company's fundamentals. In Q2, Cognex reported adjusted EPS at $0.25, up from $0.23 in the same quarter last year. This print beat analysts' estimates by 5.8%. Over the next 12 months, Wall Street expects Cognex's full-year EPS of $0.81 to grow 20.8%. Key Takeaways from Cognex's Q2 Results It was great to see Cognex's revenue guidance for next quarter top analysts' expectations. We were also happy this quarter's revenue, EPS, and EBITDA outperformed Wall Street's estimates. On the other hand, its full-year EPS guidance missed. Overall, this print had some key positives. The stock traded up 9.6% to $37 immediately after reporting. So should you invest in Cognex right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-06-2025
- Business
- Yahoo
Mairs & Power Small Cap Fund Established a Position in Cognex Corporation (CGNX)
Mairs & Power, an investment advisor, released the 'Mairs & Power Small Cap Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund declined 11.04% in the quarter, lagging behind the Russell 2000 Total Return Index, which fell 9.48%, the S&P Small Cap 600 Total Return Index, which was down 8.93%, and the Morningstar U.S. Fund Small Blend Index, which declined 8.09%. Stock selection, with negative relative performance in Healthcare, Financials, Information Technology, and Real Estate sectors, led to the underperformance of the portfolio in the quarter. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Mairs & Power Small Cap Fund highlighted stocks such as Cognex Corporation (NASDAQ:CGNX). Cognex Corporation (NASDAQ:CGNX) provides machine vision products that capture and analyze visual information to automate manufacturing and distribution tasks. The one-month return of Cognex Corporation (NASDAQ:CGNX) was 6.00%, and its shares lost 32.20% of their value over the last 52 weeks. On June 27, 2025, Cognex Corporation (NASDAQ:CGNX) stock closed at $31.46 per share, with a market capitalization of $5.281 billion. Mairs & Power Small Cap Fund stated the following regarding Cognex Corporation (NASDAQ:CGNX) in its Q1 2025 investor letter: "During the first quarter of 2025, we initiated a position in Cognex Corporation (NASDAQ:CGNX). Cognex, headquartered in Massachusetts, is a leading provider of computer vision systems for industrial automation. The company serves a diverse client base that includes automotive, semiconductor, logistics, healthcare and consumer goods manufacturers. Cognex's embedded AI capabilities are promising, as they improve accuracy and productivity for their customers' material handling processes, and their products reduce deployment complexity, which is a key differentiator in a competitive space." A worker utilizing a vision sensor to verify discrete items. Cognex Corporation (NASDAQ:CGNX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Cognex Corporation (NASDAQ:CGNX) at the end of the first quarter, which was 37 in the previous quarter. Cognex Corporation (NASDAQ:CGNX) reported $216 million in revenue, surpassing the guidance midpoint, reflecting a 2% year-on-year growth. While we acknowledge the potential of Cognex Corporation (NASDAQ:CGNX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Cognex Corporation (NASDAQ:CGNX) and shared the list of best overlooked stocks that pay dividends. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of NOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Globe and Mail
24-06-2025
- Business
- Globe and Mail
3 Monster Growth Stocks to Buy in the Second Half of 2025
The second half of 2025 offers a chance for investors to shake off the cobwebs of tariffs and recession fears and focus on where the market is going, rather than where it has been. Archer Aviation (NYSE: ACHR) has been on a roller coaster, while Cognex (NASDAQ: CGNX) and First Solar (NASDAQ: FSLR) have sold off considerably year to date. Despite these jarring moves, these three companies could be worth buying in the second half of 2025 and holding for years to come. Read on to find out why. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Archer Aviation stock has soared since this time last year -- and it's poised to keep ascending. Scott Levine (Archer Aviation): If you take a look at Archer Aviation stock's performance in 2025, you'll see it has logged a modest 3% gain (as of June 20). If you expand your perspective to the past year, however, you'll find a much different story -- a 222% gain. In light of this, growth investors may feel like it's too late to hitch a ride with the electric vertical takeoff and landing (eVTOL) stock, but there's no reason to think that Archer can't gain considerably more altitude. Developing innovative aircraft -- such as Archer's eVTOL aircraft dubbed Midnight -- is no small feat. To ensure that the aircraft is safe, Archer is undergoing a rigorous certification process from the Federal Aviation Administration (FAA) that's nearing its conclusion. The company has received a variety of requisite certifications from the FAA and is currently working toward receiving Part 142, the final certificate it needs before commencing commercial operations. Management is optimistic about receiving the certification soon and projects it will start commercial operations in 2025. Separate from the FAA certification, Archer continues to make progress in securing partnerships. Most recently, it announced an agreement (valued at up to $18 million) to deploy its Midnight aircraft in Indonesia, which is the third agreement of its type. Archer has also inked agreements in the United Arab Emirates and Ethiopia. According to Business Research Insights, the eVTOL market is poised for significant growth. Whereas it was valued at about $1.2 billion in 2024, it's expected to climb to $20.1 billion by 2033. For those scanning the skies for a growth stock with tremendous upside, Archer hits the mark. Machine vision is the future of automated manufacturing Lee Samaha (Cognex): If you looked at a three-year chart of revenue growth -- or rather decline, in this case, as Cognex's revenue is down 15.3% over the period on a 12-month rolling basis -- the last thing you'd conclude is that it's a "monster growth" stock. That said, the chart below provides a broader perspective. CGNX Revenue (TTM) data by YCharts. Unfortunately, the last few years have been challenging, with high interest rates pressuring end demand in two key markets -- automotive and consumer electronics. Meanwhile, the company's logistics end market (primarily e-commerce warehousing) experienced a boom during the lockdowns, only to face a correction in the following years. Still, Cognex's long-term growth trend remains impressive, and management highlighted the opportunity ahead during its recent investor day event. In a nutshell, management expects a combination of underlying industry growth of 4%, with 6% to 7% growth on top of that from the increasing penetration of machine vision into automated processes. Throw in 3% growth from inorganic sources (Cognex is the industry leader, so acquisitions are likely), and it results in long-term growth of 13% to 14% per annum. Those assumptions appear reasonable, considering the ever-increasing complexity of production, the need to improve manufacturing efficiency and quality control, the desire to reshore production to higher-labor-cost countries, and the increased value added to its solutions through artificial intelligence. It adds up to a compelling growth story -- if you can tolerate some possible volatility, given challenging near-term end markets. A bright light in a cloudy industry Daniel Foelber (First Solar): Solar stocks soared in 2020 due to a combination of low interest rates, favorable policies, government support, and a push for clean energy. Since then, however, many solar stocks have gotten crushed as these same factors that drove the industry higher have reversed course. Borrowing costs now are elevated. And last week, the Senate Finance Committee proposed accelerating the reduction and removal of tax credits for solar and wind energy. Solar-panel manufacturer First Solar plunged on the news in lockstep with the broader industry. But even when factoring in the sell-off, First Solar has been a standout and is actually outperforming the S&P 500 over the last five years. In contrast, the solar industry, as measured by the Invesco Solar ETF, is down over that period. FSLR data by YCharts. There are several reasons why First Solar has held its own despite immense industry pressure. For starters, it's profitable and has an impeccable balance sheet. It also doesn't manufacture in China -- an advantage if trade tensions mount. The company has been expanding its U.S. footprint recently, including opening a $1.1 billion manufacturing facility in Alabama last year. These moves could pay off over the long run if government incentives and trade policy continue to favor companies that onshore their manufacturing and create U.S. jobs. Despite these advantages, First Solar still relies on government subsidies and sustained commercial investment in solar. In its Q1 2025 earnings release, First Solar guided for $1.45 billion to $2 billion in operating income. But that figure assumes $1.65 billion to $1.7 billion in 45X tax credits. The 45X tax credit incentivizes domestic production and sale of renewable energy components (like solar panels). Take away the tax credits, and First Solar's profitability and high cash flow are put in jeopardy. Given the industrywide uncertainty, it's understandable investors may be on the sidelines with First Solar stock. But the company has what it takes to ride out the industrywide downturn. Despite profitability pressures, First Solar still expects to finish 2025 with $400 million to $900 million in net cash (cash, cash equivalents, restricted cash, restricted cash equivalents, and marketable securities, less expected debt). The company also has a massive order backlog that supports years of future cash flow (although that backlog could decrease if customers pull back on purchases). Add it all up, and First Solar stands out as one of the best all-around buys in the industry for patient investors. Should you invest $1,000 in Archer Aviation right now? Before you buy stock in Archer Aviation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Archer Aviation wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 23, 2025
Korea Herald
09-06-2025
- Business
- Korea Herald
Cognex Introduces OneVision: A Breakthrough Cloud Platform for AI-Powered Machine Vision
New Training Environment Delivers Scalable Automation and Solves Key Barriers to Industrial AI Adoption NATICK, Mass., June 10, 2025 /PRNewswire/ -- Cognex Corporation (NASDAQ: CGNX), the global technology leader in industrial machine vision, today announced the upcoming full launch of OneVision ™, a cloud-based platform that will transform how manufacturers build, train, and scale AI-powered vision manufacturers build, train, and scale AI-powered vision applications. "OneVision is the result of nearly a decade of industrial AI innovation at Cognex. By combining our advanced AI technology with excellent customer experience, we continue to unlock new possibilities for our customers," said Carl Gerst, Executive Vice President of Vision and ID Products at Cognex. "We're simplifying the entire application development process; helping our customers move faster, scale more efficiently, and maximize the value of their automation investments." Designed for the demands of global manufacturing, OneVision tackles the most common barriers to wide-scale deployment of AI-powered machine vision: With the OneVision software platform, Cognex expands its industry-leading portfolio of machine vision products, unlocking new applications, accelerating AI adoption, and allowing users to solve complex vision tasks faster, more reliably, and at scale. OneVision is currently available to select customers on the In-Sight® 3800 and 8900 vision systems and will be released on additional Cognex products in early 2026. and will be released on additional Cognex products in early 2026. About Cognex Corporation For over 40 years, Cognex has been making advanced machine vision easy, paving the way for manufacturing and distribution companies to get faster, smarter, and more efficient through automation. Innovative technology in our vision sensors and systems solves critical manufacturing and distribution challenges, providing unparalleled performance for industries from automotive to consumer electronics to packaged goods. Cognex makes these tools more capable and easier to deploy thanks to a longstanding focus on AI, helping factories and warehouses improve quality and maximize efficiency without needing highly technical expertise. We are headquartered near Boston, USA, with locations in over 30 countries and more than 30,000 customers worldwide. Learn more at
Yahoo
09-06-2025
- Business
- Yahoo
Cognex Introduces OneVision: A Breakthrough Cloud Platform for AI-Powered Machine Vision
New Training Environment Delivers Scalable Automation and Solves Key Barriers to Industrial AI Adoption NATICK, Mass., June 10, 2025 /PRNewswire/ -- Cognex Corporation (NASDAQ: CGNX), the global technology leader in industrial machine vision, today announced the upcoming full launch of OneVision™, a cloud-based platform that will transform how manufacturers build, train, and scale AI-powered vision manufacturers build, train, and scale AI-powered vision applications. "OneVision is the result of nearly a decade of industrial AI innovation at Cognex. By combining our advanced AI technology with excellent customer experience, we continue to unlock new possibilities for our customers," said Carl Gerst, Executive Vice President of Vision and ID Products at Cognex. "We're simplifying the entire application development process; helping our customers move faster, scale more efficiently, and maximize the value of their automation investments." Designed for the demands of global manufacturing, OneVision tackles the most common barriers to wide-scale deployment of AI-powered machine vision: Long development cycles and steep learning curves: An intuitive interface with guided workflows allows teams of all skill levels to shorten setup time from months to minutes. Expensive infrastructure investments: Cloud-based delivery eliminates the need for additional hardware, lowering upfront costs and maximizing ROI. Lack of integration and disconnected operations: A unified platform brings tools, data, and workflows together to streamline collaboration, leverage shared work, and accelerate deployment across devices, lines, and locations. Inconsistent performance across sites: Centralized development combined with local customization ensures standardization while providing flexibility for site-specific requirements. With the OneVision software platform, Cognex expands its industry-leading portfolio of machine vision products, unlocking new applications, accelerating AI adoption, and allowing users to solve complex vision tasks faster, more reliably, and at scale. OneVision is currently available to select customers on the In-Sight® 3800 and 8900 vision systems and will be released on additional Cognex products in early 2026. and will be released on additional Cognex products in early 2026. About Cognex Corporation For over 40 years, Cognex has been making advanced machine vision easy, paving the way for manufacturing and distribution companies to get faster, smarter, and more efficient through automation. Innovative technology in our vision sensors and systems solves critical manufacturing and distribution challenges, providing unparalleled performance for industries from automotive to consumer electronics to packaged goods. Cognex makes these tools more capable and easier to deploy thanks to a longstanding focus on AI, helping factories and warehouses improve quality and maximize efficiency without needing highly technical expertise. We are headquartered near Boston, USA, with locations in over 30 countries and more than 30,000 customers worldwide. Learn more at IR ContactGreer AvivHead of Investor RelationsCognex Corporationir@ Media ContactJeremy SaccoSenior Manager, Global Content MarketingCognex Corporationpr@ SOURCE Cognex Corporation Sign in to access your portfolio
