For the fourth quarter of 2018, Cognex expects revenue to be between $180 million and $190 million. At the mid-point, this outlook is lower than the company’s long-term growth target due to both the slower spending by customers in China and a lingering headwind from last year’s high level of investment by the large OLED display and smartphone manufacturers.
“While we are pleased with our Q3-18 results, slower spending trends that we are experiencing in China have reduced our revenue outlook for Q4-18,” said CEO Robert Willett.
https://news.alphastreet.com/cognex-q2-earnings-flat-stock-gains/
Research, Development & Engineering expenses increased 14% from the prior year, due to Cognex’s investment in engineering resources for new product development. Selling, General & Administrative expenses increased 8% due to continued investments in sales resources as well as higher commissions and travel expenses.
Cognex increased its quarterly cash dividend by 11% to $0.05 per share, payable on November 30, 2018, to all shareholders of record as of November 16, 2018. Also, the Board authorized the repurchase of up to $200 million of Cognex stock in open market transactions.
Shares of Cognex, which plunged to a 52-week low ($39.00) during Monday’s regular trading session, closed at $39.61, down 3.95%. After the earnings announcement, the stock continued its poor performance by tanking another 10% in the extended hours of trading.