Summary
- Cognex posted strong revenue, margins, and profits in the last quarter.
- The stock returned 62.49% since it was last recommended.
- Further upside in 2021 discussed.
- Looking for a helping hand in the market? Members of DIY Value Investing get exclusive ideas and guidance to navigate any climate. Get started today ยป
Some of the best technology stocks are undercovered, ignored ones. So, when Cognex (CGNX) returned over 60% since this article identified its positive catalysts, the latest quarterly report suggests more new highs ahead.
How did the company post third-quarter results that beat consensus estimates on earnings and revenue?
Cognex Beats Consensus
In Q3, Cognex posted a non-GAAP EPS of 47 cents. Revenue rose 36.9% year on year to $251.07 million. The stock promptly traded as high as $74, before settling at $70.54 at the time of writing. Readers would have enjoyed a return of over 61%:
Data courtesy of SA Premium
Though its 9% dividend increase is a token amount, the yield of 0.34% is symbolic. Cognex strengthened its financial position as of September 27, 2020. It ended the quarter with around $1 billion in cash and investments. The company has no debt on its balance sheet.
Data by YCharts
Cognex generated $159 million in cash from operations. To increase shareholder value, it bought back $51 million of its stock and paid $29 million in dividends to shareholders. Since CGNX stock traded at between $60 and $70 in the last quarter, the buyback paid off slightly for shareholders.
