Cognex Q3 2021 Earnings Report
Key Takeaways
Cognex Corporation reported record revenue of $285 million for Q3 2021, a 13% increase from Q3 2020 and a 6% increase from Q2 2021. The company's operating margin was 31%, exceeding the long-term target of 30%. Growth was driven by logistics, automotive, and other markets, offset by lower revenue from consumer electronics. Supply chain constraints are beginning to hold back revenue growth and drive cost increases.
Cognex reported the highest quarterly revenue in the company's 40-year history.
Operating margin was 31%, above the company's 30% long-term target.
Growth in logistics, automotive, and other markets was offset by lower revenue from consumer electronics.
Supply chain constraints are beginning to hold back revenue growth and drive cost increases.
Cognex
Cognex
Forward Guidance
Cognex anticipates Q4 2021 revenue to range between $210 million and $230 million, roughly flat compared to Q4 2020. Gross margin is expected to be in the low-70% range due to elevated costs. Operating expenses are projected to increase by mid-single digits from Q3 2021.
Positive Outlook
- Demand from customers is high
- New product development
- Sales and marketing activities
- Investments around the company’s growth plans, including additional resources
- The effective tax rate is expected to be 18%, excluding discrete tax items.
Challenges Ahead
- Lingering headwind from last year’s high concentration of consumer electronics revenue
- Delayed product sales due to supply-chain constraints
- Low growth in logistics due to the timing of revenue
- Gross margin for Q4-21 is expected to be in the low-70% range and below the company’s mid-70% long-term target because of elevated costs, particularly for components and freight.
- Operating expenses are expected to increase by mid-single digits from Q3-21