Core Viewpoint - The industrial economy is currently weak due to high interest rates, but investing in automation and robotics stocks like Cognex and Emerson Electric is recommended for long-term growth potential [2][3]. Group 1: Market Trends - There are favorable long-term trends favoring investment in automation, driven by the need for productivity and quality enhancements as manufacturing reshoring occurs [3]. - The automation market has faced downturns due to supply chain issues and inventory management challenges post-lockdowns, impacting delivery times and order placements [4][5]. Group 2: Cognex Corporation - Cognex's key markets, including consumer electronics and automotive, have been negatively impacted by high interest rates, while logistics is beginning to recover [6]. - The company anticipates a long-term market growth rate of 13%, with Cognex expected to grow at 15% annually as machine vision adoption increases [8]. - Lower interest rates are expected to facilitate a return to Cognex's long-term growth trajectory [7]. Group 3: Emerson Electric - Emerson Electric focuses more on process automation, generating 34% of its revenue from discrete automation, which is traditionally seen as lower growth compared to its peers [9]. - The company has restructured its portfolio to increase exposure to automation, divesting its climate control business and acquiring NI for $8.2 billion [10][11]. - Emerson's core process automation market has strong growth drivers related to clean energy technologies, making it an attractive investment despite its current valuation [12]. Group 4: Future Outlook - Lower interest rates are expected to aid the recovery of Cognex's and Emerson's sales in 2025, as inventory issues are resolved [13]. - Cognex is projected to return to a growth rate of 15%, while Emerson aims for 4% to 7% revenue growth and double-digit earnings growth [13].

Group 1: Nvidia - Nvidia is a key player in the AI revolution, known for its advanced graphics processing units (GPUs) [3] - Despite a 14% pullback from its all-time high in June, Nvidia's stock is up approximately 136% in 2024, driven by strong demand from major data center clients like Microsoft and Meta Platforms [4][5] - Nvidia's market capitalization is around $2.86 trillion, reflecting a valuation increase of over 2,480% in the past five years, making it the third-most valuable company globally [5] - The company reported a gross margin of 75.1% in Q2, down from a record 78.4% in Q1, and expects a gross margin of about 74.5% for the current quarter [6] - Nvidia's sales grew by 122% year-over-year in Q2, with expectations for a 79% increase in Q3 compared to the same period in 2023 [7] - The upcoming launch of Nvidia's next-generation Blackwell chips is anticipated to significantly enhance AI performance and revenue, with expectations of being the company's most successful products [8] - Nvidia's competitive position in the advanced GPU market allows for strategic pricing decisions that could enhance long-term positioning, even if it means sacrificing some margins [9] - For long-term investors, Nvidia remains a valuable addition to portfolios focused on AI trends [10] Group 2: Cognex - Cognex, a machine vision company, is currently facing challenges in its end markets, with its share price down 60% from its all-time high [11] - The company is focused on long-term earnings potential rather than short-term performance, as its machine vision solutions have substantial growth opportunities [12] - Management projects annual growth of 13% in its end markets, with Cognex expected to slightly outpace this at 15% annually [13] - Short-term growth expectations are tempered due to lower demand in key markets such as automotive and consumer electronics, influenced by rising interest rates [14] - The company anticipates a slower order flow until spring 2025, as larger orders typically occur in spring and summer [15] - A potential decrease in interest rates in 2025 could lead to increased investment spending in automotive and consumer electronics, while the logistics market is already showing signs of recovery [16]

Core Viewpoint - Cognex Corporation's near-term outlook is weak due to disappointing second-quarter earnings, but its long-term prospects remain strong as the machine vision technology market is expected to grow significantly [1][5]. Near-term Weakness - The machine vision technology sector is facing short-term challenges, particularly in automotive and consumer electronics, due to high interest rates affecting sales and investment [2][3]. - CEO Rob Willett highlighted that macroeconomic sentiment has declined, leading to delays and reductions in electric vehicle (EV) projects, and tempered expectations for consumer electronics investment in 2024 [3]. Revenue Guidance - Management anticipates a slight decline in revenue from the second quarter to the third quarter, with large orders typically not expected until spring 2025 [4]. Investment Case - Long-term investors are encouraged to view the current dip in stock price as a buying opportunity, as the company is likely to return to a growth trajectory with improvements in the global economy and lower interest rates boosting automotive and consumer electronics sales [5][7]. - The long-term outlook for e-commerce sales is also positive, contributing to the growth potential of Cognex [5]. Industry Recovery - Sales in logistics and semiconductors are currently growing strongly, indicating a cyclical recovery in these industries, which bodes well for Cognex's future performance [6].

Dublin, Sept. 03, 2024 (GLOBE NEWSWIRE) -- The "Inspection Machines - Global Strategic Business Report" has been added to ResearchAndMarkets.com's offering. The global market for Inspection Machines was estimated at US$718.3 Million in 2023 and is projected to reach US$999.2 Million by 2030, growing at a CAGR of 4.8% from 2023 to 2030. Inspection machines have become an integral part of quality control processes across various industries, ensuring that products meet stringent regulatory standards and custom ...

Now could be a great time for investors to consider the best robotics stocks to buy in August. I wrote around a month ago that there could be record volatility in the market. That prediction turned out to be true, and volatility has since been decreasing. Decreased volatility generally leads to decreased fear and higher stock prices. Buying these best robotics stocks now could be a great option for investors to take advantage of short-term swings in the market. Also, as the market expands, with projections ...

This technology company will suffer from end-market weakness in 2024, but its long-term prospects remain excellent. Cognex End Market Served Market Cognex Market Share Automotive $1.5 billion 15% Electronics $1.35 billion 20% Logistics $2 billion 15% Medical related $650 million >10% Others $1 billion <20% The stock market did not take kindly to machine vision company Cognex Corp.'s (CGNX -0.03%) recent second-quarter earnings report. Unfortunately, its end markets are weakening in 2024, and the hoped-for p ...

1 1 i i alvarez Cognec's (NASDAQ:CGNX) business continued to slow in the second quarter, which is unsurprising given macro headwinds. Revenue and gross margin vere in line with guidance, although Cognex's revenue was down Yo Y excluding the impact of the Moritex acquisition. This appears to have caught the market of quard, with the stock falling close to 25% in the wake of earnings. I previously suggested that despite ongoing macro headwinds, Cognex's stock may have bottomed, absent further deterioration in ...

New AI tool simplifies counting inspections for manufacturers across all industries NATICK, Mass., Aug. 6, 2024 /PRNewswire/ -- Cognex Corporation (NASDAQ: CGNX), the leader in industrial machine vision, expanded the capabilities of its In-Sight SnAPP™ vision sensor with the launch of an AI-enabled counting tool. This innovative software tool transforms how manufacturers handle counting tasks, allowing them to easily automate assembly verification and quantity checks that were previously timeconsuming or pr ...

Financial Data and Key Metrics Changes - Revenue for Q2 2024 was $239 million, a decline of 1% year-on-year, with a 7% contribution from Moritex. Excluding Moritex and foreign exchange impacts, revenue declined by 7% [13][14] - Adjusted gross margin was 70.3%, down from 74.3% a year ago, impacted by a 2 percentage point dilution from Moritex and a negative mix effect [14][19] - Adjusted EBITDA margin was 19.9%, down from 28.1% year-on-year, but increased by over 8 percentage points sequentially due to a seasonal revenue increase [15][19] - Diluted earnings per share on a GAAP basis was $0.21, down year-on-year but up 200% sequentially. Adjusted diluted EPS was $0.23, down $0.10 year-on-year and up $0.11 sequentially [16] Business Line Data and Key Metrics Changes - Automotive revenue declined both year-on-year and sequentially, primarily due to delays in EV battery projects and broader automotive business softness, especially in Europe [10][11] - Logistics achieved strong double-digit revenue growth year-on-year, with expectations for continued growth in the second half of the year [11][30] - Consumer electronics revenue was down year-on-year, with expectations for a more heavily weighted Q2 revenue compared to 2023 [11][12] - Semiconductor business showed strong momentum with significant year-on-year growth, driven by investments in high bandwidth memory for AI [12][58] Market Data and Key Metrics Changes - Year-on-year revenue growth was stable across most regions except for China, which experienced a decline for the seventh consecutive quarter [13][14] - The Americas saw slight growth driven by logistics, while Europe and other Asia regions faced slight declines [13][14] - The automotive sector showed significant weakness in both Europe and China, with EV battery projects particularly affected [10][34] Company Strategy and Development Direction - The company is focusing on integrating AI into its products to drive adoption and enhance customer experience [5][7] - The emerging customer initiative aims to broaden the customer base and is expected to generate incremental revenue, although the ramp-up is taking longer than anticipated due to macroeconomic softness [9][24] - The company plans to enhance investor communication and is preparing for an Investor Day in the first half of 2025 [21] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging but stable business environment, with positive momentum in logistics but continued weakness in factory automation [4][21] - There is cautious sentiment among manufacturing customers regarding capital expenditures, particularly in automotive and packaging sectors [10][24] - The company expects revenue for Q3 2024 to be between $225 million and $240 million, reflecting a soft market backdrop [17][18] Other Important Information - The Moritex acquisition is performing well, contributing positively to revenue and integration efforts are on track [45][46] - The company maintains a strong cash position with $555 million in cash and investments and no debt [17] Q&A Session Summary Question: Emerging customer initiative revenue expectations - Management acknowledged that the revenue ramp for the emerging customer initiative is taking longer due to macro softness, with expectations for $50 million in incremental revenue [24][25] Question: Consumer electronics market changes - Management noted increased uncertainty in consumer electronics, with tempered expectations for 2024 due to cautious investment from customers [26][27] Question: Logistics market momentum - Management confirmed strong double-digit growth in logistics, with broad-based positive trends across various customer segments [30][31] Question: Automotive market trends - Management highlighted significant weakness in the automotive sector, particularly in Europe and China, with EV battery projects facing delays [34][35] Question: Semiconductor market growth - Management reported strong growth in the semiconductor sector, driven by high bandwidth memory investments for AI [58][59]

Core Viewpoint - Cognex's stock has experienced a significant drop, presenting a potential buying opportunity despite recent disappointing financial results [1][5][6] Financial Performance - Cognex reported a 1% year-over-year decline in revenue for Q2 [3] - Operating margin decreased to 16.1% from 26.9% in the same quarter last year [3] - Earnings per share fell by 37% year over year [3] Market Challenges - The automotive sector, particularly electric vehicles, is identified as a major growth hurdle due to a global slowdown in auto sales [3] - Demand for factory automation systems has also slowed, impacting revenue [3] - Sales from China were affected by cyclical softness in the consumer electronics market [3] Strategic Acquisitions - Cognex incurred additional costs related to the acquisition of Moritex, an optical components company, for approximately $275 million [4] Future Outlook - The company anticipates Q3 revenue between $225 million and $240 million, indicating potential double-digit growth year-over-year but a sequential decline of 6% [5] - Cognex projects a 15% compound annual growth in revenue over the long term, suggesting strong future potential despite short-term challenges [6]