NASDAQ$CGNX

Cognex Corp · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Cognex reported a decrease in revenue and net income due to the June fire and a slowdown in e-commerce fulfillment capacity expansion.

Cognex reported a significant decrease in revenue and net income for Q3 2022. Revenue decreased by 26% year-over-year, and net income decreased by 57%. The decline was attributed to a fire at a contract manufacturer and a slowdown in e-commerce fulfillment capacity expansion.

  • Revenue decreased by 26% year-over-year due to logistics slowdown and fire disruption.
  • Gross margin increased to 73% due to favorable revenue mix.
  • Operating income decreased due to lower revenue and fire-related charges.
  • Q4 revenue is expected to be between $235 million and $255 million.

Headline financials

Total Revenue

$210M

Previous: $285M-26.4%
EPS (adj)

$0.21

Previous: $0.40-47.5%
Gross Margin

73.0%

Previous: 70.0%+4.3%
Effective Tax Rate (GAAP)

14.0%

Previous: 11.0%+27.3%
Capital Expenditures

-$15.6M

Previous: -$10.7M-46.0%
Free Cash Flow

$18.4M

Previous: $68.2M-73.1%
Net Income

$34M

Previous: $78.9M-56.9%
Operating Income

$40M

Previous: $87.5M-54.3%
Gross Profit

$152M

Previous: $199M-23.6%
Cash & Equivalents

$818M

Previous: $985M-17.0%
Total Assets

$1.9B

Previous: $2.05B-7.3%

Revenue & EPS history

Cognex · Revenue · Quarterly

$210M

Q3 2022-26.4%vs Q3 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

Cognex expects Q4 2022 revenue to be between $235 million and $255 million with gross margin in the low-70% range and an effective tax rate of 16%, excluding discrete tax items.

Tailwinds

  • Improved production lead times relative to Q3-22.
  • Growth from the broader market.
  • Sequential increase in revenue due to improved production lead times.
  • Replenished inventory positions following the fire more quickly than anticipated.
  • Business disruption from the fire is believed to be behind us.

Headwinds

  • Lower spending on large projects in logistics.
  • Roughly 10-basis point unfavorable impact of currency exchange rates.
  • Gross margin reflects significant premiums paid to procure components due to the fire.
  • Overcapacity in logistics will dampen results again in Q4.
  • The combined total of expenses for RD&E and SG&A is expected to increase by low-single digits on a sequential basis due to higher incentive compensation

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+1.5%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+1.3%

Avg return

30 days after

59%

40 / 68 earnings

Positive

+36.3%

Q4 2025

Best reaction

-22.7%

Q2 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.8%+5.5%-2.4%
Q4 2025+36.3%+32.7%+11.5%
Q3 2025-12.9%-15.7%-19.7%
Q1 2025+1.9%+1.9%+9.8%
Q4 2024-13.6%-15.8%-19.7%
Q3 2024-0.9%+0.6%-1.5%
Q2 2024-20.0%-24.6%-17.4%
Q1 2024+7.0%+12.1%+11.2%
Q4 2023+5.5%+9.1%+12.6%
Q3 2023-0.5%+3.8%+7.9%
Q2 2023-3.2%-4.4%-6.9%
Q1 2023+4.8%+4.6%+20.1%
Q4 2022-14.6%-16.2%-13.7%
Q3 2022+7.7%+9.8%+18.8%
Q2 2022-8.1%-5.1%-15.9%
Q1 2022-20.2%-28.1%-29.4%
Q4 2021+2.5%+0.5%+11.7%
Q3 2021-12.8%-8.2%-17.0%
Q2 2021-4.4%-5.5%-1.9%
Q1 2021-2.9%-6.3%-0.5%
Q4 2020+6.4%+2.4%-8.2%
Q3 2020+1.4%+1.4%+11.7%
Q2 2020+2.1%+3.5%+5.8%
Q1 2020+14.4%+7.4%+29.4%
Q4 2019-2.0%-7.2%-18.7%
Q3 2019-1.0%-0.2%-0.9%
Q2 2019+9.4%-0.3%+2.8%
Q1 2019-8.2%-10.8%-24.1%
Q4 2018+2.8%+4.3%+10.1%
Q3 2018+1.8%+12.9%+3.3%
Q2 2018+15.6%+15.8%+16.3%
Q1 2018-0.2%+2.1%+0.4%
Q4 2017-3.9%-2.8%-4.7%
Q3 2017-1.8%+6.0%+8.3%
Q2 2017+11.1%+5.8%+14.0%
Q1 2017+5.7%+5.5%+7.2%
Q4 2016+9.3%+9.7%+15.4%
Q3 2016+0.2%-1.4%+16.0%
Q2 2016+8.3%+9.5%+10.2%
Q1 2016+15.8%
Q4 2015+6.1%
Q3 2015-9.6%
Q2 2015-22.7%
Q1 2015-0.9%
Q4 2014+8.3%
Q3 2014-3.0%
Q2 2014+13.6%
Q1 2014-0.2%
Q4 2013-7.3%
Q3 2013+5.9%
Q2 2013+4.9%
Q1 2013+5.9%
Q4 2012+1.9%
Q3 2012+2.4%
Q2 2012+4.2%
Q1 2012+4.6%
Q4 2011-4.7%
Q3 2011-0.8%
Q2 2011+4.9%
Q1 2010+15.7%
Q1 2011+0.1%
Q4 2010-7.3%
Q4 2008-7.3%
Q3 2009+10.5%
Q3 2010+10.5%
Q2 2009+8.6%
Q4 2009+8.6%
Q2 2010+8.6%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro