NASDAQ$CGNX
Cognex Corp · Q4 2019 earnings
Q4 2019 earnings · · Investor relations
Briefing
Cognex faced challenges due to deterioration of business conditions in industrial markets and reported a decline in both revenue and profitability.
Cognex's Q4 2019 revenue was $169.8 million, a 12% decrease from Q4 2018. Net income was $80.3 million, or $0.46 per diluted share, compared to $45.4 million, or $0.26 per diluted share, in Q4 2018. The effective tax rate was (250)% due to discrete tax items that resulted in a tax benefit of $61 million.
- Revenue decreased by 12% from Q4-18 and 7% from Q3-19.
- Gross margin was 74% for Q4-19 compared with 73% for Q4-18 and 74% for Q3-19.
- The effective tax rate was (250)% in Q4-19, 7% in Q4-18, and 12% in Q3-19.
- Cognex recorded discrete tax items in Q4-19 that together resulted in a tax benefit of $61 million.
Headline financials
Revenue & EPS history
Cognex · Revenue · Quarterly
$170M
Forward guidance
Revenue for Q1-20 is expected to be between $155 million and $170 million. Gross margin is expected to be in the mid-70% range, similar to the gross margin reported for Q4-19. Cognex expects operating expenses in Q1-20 to be relatively flat with Q4-19 and to increase by approximately 10% over Q1-19. The effective tax rate is expected to be 19% before discrete tax items compared to 16% in 2019.
Tailwinds
- Gross margin is expected to be in the mid-70% range, similar to the gross margin reported for Q4-19.
- Operating expenses in Q1-20 are expected to be relatively flat with Q4-19.
- Growth in logistics is expected to partially offset the decrease in revenue.
- Cognex intends to continue to repurchase shares of its common stock, subject to market conditions and other relevant factors.
- Cognex's financial position as of December 31, 2019 continued to be strong, with $845 million in cash and investments and no debt.
Headwinds
- Revenue for Q1-20 is expected to be between $155 million and $170 million, a decline from both Q4-19 and Q1-19.
- Continued weakness in automotive is expected to contribute to the decrease in revenue.
- The estimated impact of the coronavirus outbreak is expected to contribute to the decrease in revenue.
- Operating expenses in Q1-20 are expected to increase by approximately 10% over Q1-19.
- The effective tax rate is expected to be 19% before discrete tax items compared to 16% in 2019.
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 Q4 2019
+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
| Quarter | Report date | Reaction (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% | — | — |
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