NASDAQ$CGNX

Cognex Corp · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Cognex reported third quarter revenue and adjusted EBITDA margin in line with guidance, driven by Logistics and Semiconductor end markets, but impacted by softness in broader factory automation and Automotive sectors. Innovation efforts and the Emerging Customer initiative showed positive strides.

Cognex reported Q3 2024 revenue of $235 million, a 19% increase year-over-year. Adjusted EBITDA margin was 17.6%. Revenue growth was driven by strong performance in the Logistics and Semiconductor end markets, while the broader factory automation business remained soft. The company managed costs effectively, delivering sequential decrease in operating expenses and improved operating and free cash flow.

  • Revenue grew by 19% year-over-year, including a 12 percentage point contribution from Moritex.
  • Adjusted EBITDA margin was 17.6%, slightly up from 17.4% in Q3 2023.
  • The effective tax rate was 19%, compared to 30% in the prior year.
  • Cognex generated $52 million in free cash flow, a $17 million improvement year-over-year.

Headline financials

Total Revenue

$235M

Previous: $197M+19.0%
EPS

$0.17

Previous: $0.16+6.3%
Gross Margin

67.9%

Previous: 72.0%-5.7%
Adjusted Gross Margin

68.7%

No prior period
Operating Margin

13.4%

No prior period
Adjusted Operating Margin

15.4%

No prior period
Adjusted EBITDA Margin

17.6%

No prior period
Effective Tax Rate (GAAP)

19.1%

Previous: 30.0%-36.3%
Adjusted Effective Tax Rate

17.6%

No prior period
Capital Expenditures

-$13M

Previous: -$16.1M+19.3%
Free Cash Flow

$16.6M

Previous: $2.85M+482.4%
Net Income

$29.6M

Previous: $18.9M+56.4%
Operating Income

$31.6M

Previous: $30.6M+3.0%
Gross Profit

$159M

Previous: $143M+11.6%
R&D Expense

$35.2M

Previous: $32.6M+8.1%

Revenue & EPS history

Cognex · Revenue · Quarterly

$235M

Q3 2024+19%vs Q3 2023
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

Cognex expects Q4 2024 revenue to be between $210 million and $230 million, representing a sequential decrease due to Consumer Electronics seasonality and one fewer month of Moritex financials. Adjusted gross margin is expected to be in the high 60 percent range, and adjusted EBITDA margin is expected to be between 14% and 17%.

Tailwinds

  • Revenue expected to increase by low-double-digits year-on-year on a reported basis, or a high-single-digit increase excluding Moritex at the midpoint.
  • Growth driven by continued strength in Logistics and Semiconductor sectors.
  • Moritex business expected to contribute 6 to 8 percent of revenue.
  • Adjusted EBITDA margin expected to increase by 3 percentage points year-on-year at the midpoint.
  • Continued tight management of operating expenses and positive operating leverage expected.

Headwinds

  • Revenue expected to decrease sequentially from Q3-24 to Q4-24.
  • Decrease driven by Consumer Electronics seasonality and one fewer month of Moritex financials.
  • Mix as well as competitive pricing are expected to be sequential headwinds for adjusted gross margin.
  • Lower gross margin expected to partially offset benefits from operating expense management and operating leverage.
  • Investment in the Emerging Customer initiative expected to partially offset benefits from operating expense management and operating leverage.

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 2024

Historical avgQ3 2024

+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