Cognex Q1 2024 Earnings Report
Key Takeaways
Cognex's Q1 2024 revenue increased by 5% year-over-year. The company is seeing early indications of recovery in certain end markets and is focused on strategic initiatives like AI-enabled 3D vision and the Emerging Customer initiative.
Revenue increased by 5% compared to Q1 2023, driven by growth in Logistics and Semi, offsetting softness in factory automation.
Gross margin was 67.3%, impacted by acquisition charges and amortization related to the Moritex acquisition.
Operating expenses increased by 5% year-over-year due to Moritex and investment in the Emerging Customer initiative.
Adjusted Net Income declined by 15% from Q1-23, primarily due to gross margin effects and investment in the Emerging Customer initiative.
Cognex
Cognex
Forward Guidance
Cognex expects Q2 2024 revenue to be between $230 million and $245 million, with adjusted gross margin slightly above 70% and adjusted operating expense increasing by low- to mid-single digits sequentially. The adjusted effective tax rate is expected to be 16%.
Positive Outlook
- Revenue is expected to increase sequentially from Q1-24 to Q2-24 due to typical seasonality of consumer electronics revenue.
- Adjusted gross margin is expected to be slightly above 70%, an increase from 68.8% in Q1-24.
- The adjusted effective tax rate is expected to be 16%.
Challenges Ahead
- Adjusted operating expense is expected to increase by low- to mid-single digits on a sequential basis.
- The company expects additional investment in the company’s Emerging Customer initiative.