Cognex Q2 2023 Earnings Report
Key Takeaways
Cognex reported a 12% decrease in revenue compared to Q2 2022, driven by softness in e-commerce logistics and weaker demand from factory automation customers. However, gross margin improved to 74%, and operating expenses were managed effectively.
Revenue decreased by 12% year-over-year, or 10% in constant currency.
Gross margin increased to 74% compared to 72% in the prior year.
Operating expenses increased by 4% year-over-year due to Emerging Customer initiative investments.
The effective tax rate was 15% in Q2 2023.
Cognex
Cognex
Forward Guidance
Cognex expects Q3 2023 revenue to be between $180 million and $200 million, with gross margin in the low-70% range and operating expenses decreasing by low-single digits sequentially. The Non-GAAP effective tax rate is expected to be 16%.
Positive Outlook
- Revenue expected between $180 million and $200 million.
- Operating expenses are expected to decrease by low-single digits on a sequential basis.
- Emerging Customer investment continues to ramp up.
- Company remains diligent about managing discretionary costs.
- Non-GAAP effective tax rate expected to be 16%.
Challenges Ahead
- Revenue is expected to decrease on a sequential basis.
- Manufacturing investment is further softening.
- Gross margin is expected to decrease from 74% in Q2 2023.
- Decrease in gross margin driven primarily by operating deleverage.
- Decrease in gross margin driven primarily by less favorable revenue mix.