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Jun 28, 2020
Cognex Q2 2020 Earnings Report
Cognex reported less-than-fabulous results due to the impact of COVID-19 pandemic, leading to restructuring and other charges.
Key Takeaways
Cognex reported a 15% decrease in revenue compared to Q2 2019, and a net loss of $1.142 million due to deteriorating global economic conditions and significant restructuring charges. Despite the difficult quarter, the company saw strong order activity in consumer electronics and e-commerce markets. Cognex expects revenue growth in Q3 2020.
Revenue decreased by 15% year-over-year due to the COVID-19 pandemic.
Net loss was $(1.142) million, or $(0.01) per diluted share, impacted by restructuring and other charges.
Order activity was strong in consumer electronics and e-commerce markets.
Company expects revenue growth in Q3 2020, driven by consumer electronics and logistics markets.
Cognex
Cognex
Forward Guidance
Cognex expects revenue for Q3-20 will be between $200 million and $220 million. Gross margin for Q3-20 is expected to be in the mid-70% range. The effective tax rate is expected to be 19%, excluding discrete tax items.
Positive Outlook
- Revenue for Q3-20 is expected to be between $200 million and $220 million.
- This range represents growth both year-on-year and sequentially.
- Higher expected revenue from customers in the consumer electronics market.
- Higher expected revenue from customers in the logistics markets.
- Gross margin for Q3-20 is expected to be in the mid-70% range.
Challenges Ahead
- Cognex is experiencing weak business conditions in its core factory automation market.
- The company expects weak business conditions in its core factory automation market to continue for some time.
- Global uncertainty widened the expected revenue range for Q3-20.
- Company is assuming that business conditions continue in line with the current situation.
- Combined total of expenses for RD&E and SG&A is expected to be relatively flat with both Q2-20 and Q3-19.