Cognex Corp (NASDAQ: CGNX) reported Q3 EPS of $0.47, $0.16 better than the analyst estimate of $0.31. Revenue for the quarter came in at $251.1 million versus the consensus estimate of $213.51 million.

GUIDANCE:

Cognex Corp sees Q4 2020 revenue of $190-210 million, versus the consensus of $182.7 million.

• Given the heightened global uncertainty, Cognex widened its expected revenue range for Q4-20.
• Cognex expects revenue for Q4-20 will be between $190 million and $210 million, which represents growth over Q4-19 due to higher expected revenue from consumer electronics and the e-commerce sector of logistics. However, this range represents a decline from Q3-20 due to the timing of revenue from customers in the consumer electronics industry, which was highly concentrated in Q3.
• Gross margin for Q4-20 is expected to be in the mid-70% range and lower than the gross margin reported for Q3-20.
• Operating expenses are expected to increase by mid-single digits over Q3-20 and to decrease from Q4-19.
• The effective tax rate is expected to be 18%, excluding discrete tax items. Notably, Cognex expects to record a discrete tax benefit of more than $12 million resulting from the application of new regulations on the use of foreign tax credits in the company’s 2019 U.S. federal tax return filed in Q4-20.

For earnings history and earnings-related data on Cognex Corp (CGNX) click here.