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Dec 31, 2021

Cognex Q4 2021 Earnings Report

Cognex reported record fourth-quarter revenue.

Key Takeaways

Cognex Corporation reported record fourth-quarter revenue of $244 million for 2021, a 9% increase from Q4-20 and a 14% decrease from Q3-21. Growth in logistics, automotive, and other markets was partially offset by lower revenue from consumer electronics. The company's financial position remained strong, with $907 million in cash and investments and no debt.

Cognex reported record fourth-quarter revenue of $244 million.

Revenue increased by 9% from Q4-20 and decreased 14% from Q3-21.

Growth in logistics, automotive, and many other markets on a year-on-year basis was partially offset by lower revenue from customers in consumer electronics.

The effective tax rate was an expense of 8% in Q4-21.

Total Revenue
$244M
Previous year: $224M
+9.1%
EPS
$0.3
Previous year: $0.32
-6.3%
Gross Margin
72%
Previous year: 75%
-4.0%
Effective Tax Rate
8%
Previous year: -7%
-214.3%
Gross Profit
$175M
Previous year: $168M
+3.9%
Cash and Equivalents
$907M
Previous year: $767M
+18.2%
Free Cash Flow
$50.4M
Previous year: $79.5M
-36.5%
Total Assets
$2B
Previous year: $1.8B
+11.3%

Cognex

Cognex

Forward Guidance

Cognex believes revenue in Q1-22 will be between $265 million and $285 million, which at the mid-point represents low double-digit growth over Q4-21. Gross margin for Q1-22 is expected to be in the low-70% range, which is similar to the level reported in Q4-21. Operating expenses are expected to be relatively flat with Q4-21. The effective tax rate is expected to be 17%, excluding discrete tax items.

Positive Outlook

  • Revenue in Q1-22 is expected to be between $265 million and $285 million.
  • Mid-point represents low double-digit growth over Q4-21.
  • The company has been experiencing strong demand from the logistics market.
  • Improvements in delivery lead times.
  • Gross margin for Q1-22 is expected to be in the low-70% range, similar to Q4-21.

Challenges Ahead

  • Operating expenses are expected to be relatively flat with Q4-21.
  • The effective tax rate is expected to be 17%, excluding discrete tax items.
  • No specific negative factors were mentioned besides the tax rate.
  • No specific negative factors were mentioned besides the operating expenses.
  • No specific negative factors were mentioned besides the gross margin.