NASDAQ$CGNX

Cognex Corp · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Cognex achieved record revenue for the fourth quarter and full year 2020, driven by e-commerce and consumer electronics, despite economic disruption and automotive industry weakness.

Cognex reported record fourth-quarter revenue, driven by strong performance in e-commerce and consumer electronics. Revenue increased by 32% year-over-year but declined 11% sequentially due to the timing of large customer deployments in the consumer electronics industry. The company is cautiously optimistic that the strength experienced in the second half of 2020 will continue into the new year.

  • Cognex reported record fourth quarter revenue for 2020.
  • Revenue increased by 32% from Q4-19 and declined by 11% from Q3-20.
  • Growth year-on-year was due to continued strong performance in the e-commerce sector of logistics and higher revenue from manufacturers of consumer electronics.
  • The sequential decrease was due to the Q3-20 timing of large-customer deployments in the consumer electronics industry.

Headline financials

Total Revenue

$224M

Previous: $170M+31.7%
EPS (adj)

$0.32

Previous: $0.11+190.9%
Gross Margin

75.0%

Previous: 74.0%+1.4%
Effective Tax Rate (GAAP)

-7.0%

Previous: -250.0%+97.2%
Capital Expenditures

$3.47M

Previous: $8.23M-57.8%
Free Cash Flow

$79.5M

Previous: $59.7M+33.2%
Net Income

$69.3M

Previous: $80.3M-13.7%
Operating Income

$59.1M

Previous: $17.6M+235.6%
Gross Profit

$168M

Previous: $125M+34.9%
Cash & Equivalents

$767M

Previous: $845M-9.2%
Total Assets

$1.8B

Previous: $1.89B-4.5%

Revenue & EPS history

Cognex · Revenue · Quarterly

$224M

Q4 2020+31.7%vs Q4 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

Cognex anticipates Q1 2021 revenue between $225 million and $245 million, driven primarily by higher revenue from the e-commerce sector of logistics. Gross margin for Q1-21 is expected to be in the mid-70% range, and likely lower than the gross margin reported for Q4-20. Operating expenses are expected to be flat to slightly down from Q1-20. The effective tax rate is expected to be 18%, excluding discrete tax items.

Tailwinds

  • Revenue in Q1-21 will be between $225 million and $245 million.
  • Growth is expected over both Q1-20 and Q4-20.
  • Growth is primarily due to higher revenue anticipated from the e-commerce sector of logistics.
  • Operating expenses are expected to be flat to slightly down from Q1-20.
  • The effective tax rate is expected to be 18%, excluding discrete tax items.

Headwinds

  • Economic conditions remain unpredictable.
  • Gross margin for Q1-21 is expected to be in the mid-70% range.
  • Gross margin is likely lower than the gross margin reported for Q4-20.
  • The sequential decrease was due to the Q3-20 timing of large-customer deployments in the consumer electronics industry.
  • The company recorded pre-tax restructuring charges of approximately $16 million for steps taken to reduce expenses, including a workforce reduction and lease terminations.

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 2020

Historical avgQ4 2020

+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%

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