NASDAQ$CGNX

Cognex Corp · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Cognex reported Q4 2022 results, which were in line with guidance, but not representative of the company's long-term growth expectations, as the company is navigating through a challenging business environment.

Cognex's Q4 2022 revenue was $239.43 million, a decrease of 2% compared to Q4 2021. Net income was $55.31 million, an increase of 3% compared to the same period last year. Diluted EPS was $0.32, compared to $0.30 in Q4 2021. The company is facing challenges due to paused investments from e-commerce customers and slower trends across the broader factory automation business.

  • Revenue decreased by 2% from Q4-21 and increased by 14% from Q3-22.
  • Gross margin was 71% for Q4-22, compared to 72% for Q4-21.
  • The effective tax rate was 7% in Q4-22.
  • Cognex expects revenue for Q1-23 to be between $180 million and $200 million.

Headline financials

Total Revenue

$239M

Previous: $244M-1.9%
EPS (adj)

$0.27

Previous: $0.30-10.0%
Gross Margin

71.0%

Previous: 72.0%-1.4%
Effective Tax Rate (GAAP)

7.0%

Previous: 8.0%-12.5%
Capital Expenditures

$4.06M

Previous: $4.77M-14.8%
Free Cash Flow

$62.2M

Previous: $50.4M+23.3%
Net Income

$55.3M

Previous: $53.5M+3.3%
Operating Income

$54.3M

Previous: $56.5M-3.9%
Gross Profit

$170M

Previous: $175M-3.1%
Cash & Equivalents

$854M

Previous: $907M-5.9%
Total Assets

$1.96B

Previous: $2B-2.3%

Revenue & EPS history

Cognex · Revenue · Quarterly

$239M

Q4 2022-1.9%vs Q4 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

Cognex expects revenue for Q1-23 to be between $180 million and $200 million. Gross margin for Q1-23 is expected to be in the low-70% range. The combined total of expenses for RD&E and SG&A is expected to increase by approximately 10% on a sequential basis. The effective tax rate is expected to be 16%, excluding discrete tax items.

Tailwinds

  • Revenue for Q1-23 is expected to be between $180 million and $200 million.
  • Gross margin for Q1-23 is expected to be in the low-70% range.
  • The effective tax rate is expected to be 16%, excluding discrete tax items.
  • Company continues to invest in the sales and marketing organization.
  • Company has new product launches coming up this year.

Headwinds

  • Revenue for Q1-23 represents a decline both year-on-year and sequentially.
  • Decline is due to lower revenue from a few large e-commerce customers.
  • Decline is due to broader macroeconomic softness.
  • Q1-23 gross margin reflects the significant premiums the company has paid to procure components previously destroyed by the fire.
  • The combined total of expenses for RD&E and SG&A is expected to increase by approximately 10% on a sequential basis due to investments in the company’s sales and marketing organization, merit increases, and an unfavorable impact from currency exchange rates.

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 2022

Historical avgQ4 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%

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