Financial Data and Key Metrics Changes - Fourth quarter revenue reached $230 million, a 17% year-on-year increase, with a 12% increase excluding Moritex [31][32] - Full year 2024 revenue was $915 million, growing 9% year-on-year or 1% excluding Moritex [39][41] - Adjusted gross margin for Q4 was 69.4%, down 130 basis points from 70.7% a year ago [34] - Adjusted diluted EPS for Q4 was $0.20, up from $0.11 year-on-year [37] - Free cash flow for Q4 totaled $49 million, compared to $7 million in Q4 of 2023 [38] Business Line Data and Key Metrics Changes - Logistics revenue grew 20% in 2024, driven by e-commerce leaders and regional providers [23] - Automotive revenue decreased by 14% year-on-year due to reduced EV battery investment [24][25] - Consumer electronics revenue fell 5% year-on-year, with limited design changes impacting demand [26] - Semiconductor business showed significant year-on-year growth, driven by high bandwidth memory chip investments [28] Market Data and Key Metrics Changes - Year-on-year revenue growth in Q4 was strongest in Greater China, driven by project timing in consumer electronics [34] - The Americas saw double-digit growth, while Europe experienced a slight decline due to weaker automotive spending [33] - Overall, the factory automation market was characterized as soft but stable, with automotive being the weakest segment [10][11] Company Strategy and Development Direction - The company aims to infuse AI into more products and tools, transform the sales force, and integrate Moritex [6][9] - New product launches include the AI-enabled 3D smart camera and the DataMan 380 barcode reader [7][9] - The sales transformation strategy has led to over 3,000 new customers acquired in 2024 [20][21] - The company is focusing on expanding into less cyclical markets, such as medical and packaging, to reduce volatility [110][112] Management's Comments on Operating Environment and Future Outlook - Management noted that the automotive market remains challenging, with expectations of continued weakness in 2025 [54] - There is cautious optimism regarding the consumer electronics market, with potential innovations expected to drive future growth [58] - The logistics market is expected to continue growing, supported by increased capacity and technology investments [71] - Management expressed confidence in the long-term value of the sales transformation strategy [21][90] Other Important Information - The company ended 2024 with $587 million in cash and investments and no debt [42] - The first quarter revenue guidance is between $200 million and $220 million, reflecting mixed macro conditions [43] - The company plans to hold an Investor Day on June 9th and 10th [46] Q&A Session Summary Question: Outlook for automotive market - Management acknowledged that 2024 was a tough year for automotive, with expectations of continued weakness but not as severe as in 2024 [50][54] Question: Consumer electronics product changes - Management indicated that while consumer electronics revenue fell, there are reasons for long-term confidence in growth due to upcoming innovations [56][58] Question: Insights on logistics market strength - Management reported strong growth across logistics, with significant investments and technology adoption driving demand [71][72] Question: M&A appetite and strategy - Management confirmed a continued interest in quality M&A opportunities, particularly following the successful Moritex acquisition [115][116] Question: Pricing challenges in China - Management highlighted ongoing pricing pressures in China due to competition but emphasized a strategy to maintain market share [126][128]

Cognex Q4-2024 Financial Results February 12, 2025 1 © 2025 Cognex Corporation Forward Looking Statements Certain statements made in this report, as well as oral statements made by the Company from time to time, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. Readers can identify these forward-looking statements by our use of the words "expects," "anticipates," "estimates," "potential," "believes," "proje ...

Revenue and Growth - Revenue for 2024 was $914,515,000, representing a 9% increase from $837,547,000 in 2023, driven by the acquisition of Moritex Corporation and higher revenue from logistics and semiconductor industries [134][138]. - Revenue from the logistics industry increased by 20% year-over-year, representing approximately 23% of total revenue in 2024 [139]. - Revenue from the semiconductor industry grew by 80% year-over-year, accounting for approximately 11% of total revenue in 2024 [140]. - Revenue from customers in the Americas increased by 6%, while revenue from Europe decreased by 1% in 2024 [141][143]. - The acquisition of Moritex contributed approximately 8% to total revenue in 2024 [138]. - The company's revenue for the year ended December 31, 2024, was $914,515,000, representing an increase from $837,547,000 in 2023, but a decrease from $1,006,090,000 in 2022 [196]. - Revenue from the Americas was $350,155,000 in 2024, up from $330,415,000 in 2023, indicating a growth of 6.3% [301]. Profitability and Margins - Gross margin decreased to 68% in 2024 from 72% in 2023, primarily due to a less favorable revenue mix and pricing pressures [135][143]. - Operating income decreased to 13% of revenue in 2024 compared to 16% in 2023, with net income decreasing to 12% of revenue or $0.62 per share [137]. - The gross profit for 2024 was $625,794,000, compared to $601,241,000 in 2023, indicating a slight improvement year-over-year [196]. - Operating income for 2024 was $115,065,000, down from $130,702,000 in 2023 and significantly lower than $246,229,000 in 2022 [196]. - Net income for 2024 was $106,171,000, a decrease from $113,234,000 in 2023 and $215,525,000 in 2022 [196]. - The total comprehensive income for 2024 was $78,730,000, a decline from $137,195,000 in 2023 and $194,170,000 in 2022 [198]. Expenses and Costs - Selling, general, and administrative expenses increased by 9% in 2024, primarily due to investments in sales personnel and costs related to the Moritex acquisition [148]. - Research, development, and engineering expenses remained relatively flat at $139,815,000, representing 15% of total revenue in 2024 [146][147]. - Operating expenses increased by 9% to $510,729,000 in 2024, maintaining a consistent percentage of total revenue at 56% [145]. - The total operating lease expense increased to $14,131,000 in 2024 from $11,598,000 in 2023, representing a rise of approximately 21.8% [283]. Cash Flow and Investments - Net cash provided by operating activities totaled $149,081,000 in 2024, driven by growth in logistics revenue [158]. - Net cash used in investing activities was $38,969,000, primarily for capital expenditures of $15,043,000 related to new product introductions [159]. - The company reported cash dividends per common share of $0.305 in 2024, up from $0.286 in 2023 and $0.265 in 2022 [196]. - As of December 31, 2024, the company had an accumulated cash and investment balance of $586,948,000, indicating strong liquidity [157]. - The Company’s total investments amounted to $586,948,000 as of December 31, 2024, compared to $576,277,000 in 2023, indicating a slight increase [275]. Tax and Non-Operating Income - Income before income tax expense decreased by $3,859,000, or 3%, to $131,489,000 in 2024, while income tax expense increased by $3,204,000, or 14%, to $25,318,000 [155]. - The effective income tax rate rose to 19% in 2024 from 16% in 2023, with discrete tax net expenses recorded at $5,731,000 in 2024 [155]. - For the twelve months ended December 31, 2024, total non-operating income increased by $11,778,000, or 254%, to $16,424,000 compared to $4,646,000 in 2023 [151]. Shareholder Returns - The company repurchased 1,711,000 shares at a cost of $67,085,000 in 2024, leaving a remaining balance of $265,807,000 under the stock repurchase program [161]. - Cash dividends totaled $52,329,000 in 2024, with $0.075 per share in the first three quarters and $0.080 per share in the fourth quarter [162]. - The Company declared a cash dividend of $0.080 per share in the fourth quarter of 2024, an increase from $0.075 per share in the previous quarter [310]. Assets and Liabilities - Total assets decreased from $2,017,812 in 2023 to $1,992,850 in 2024, a decline of approximately 1.2% [200]. - Total current liabilities increased from $151,884 in 2023 to $169,380 in 2024, an increase of approximately 11.5% [200]. - Shareholders' equity rose from $1,504,752 in 2023 to $1,517,505 in 2024, an increase of about 0.8% [202]. - The total inventory as of December 31, 2024, was $157,527,000, a decrease from $162,285,000 in 2023, reflecting a reduction of approximately 2.3% [280]. Accounting and Reporting - The Company recognizes revenue in accordance with ASC 606, reflecting the transfer of promised goods or services to customers [237]. - The consolidated financial statements include accounts of Cognex Corporation and its wholly owned subsidiaries, with all intercompany transactions eliminated [207]. - The Company adopted new accounting guidance in 2024 related to the disclosure of segment information, which was retrospectively applied to 2023 and 2022 [187]. - The Company adopted ASU 2023-07 for segment reporting, effective for fiscal years beginning after December 15, 2023, requiring disclosure of segment profit or loss measures used by the chief operating decision maker [269]. Risk Management and Supply Chain - The company has faced disruptions in the supply of key components due to global supply chain challenges, resulting in higher purchase costs and manufacturing delays [266]. - The company sources components from preferred vendors, and disruptions may lead to higher costs and delays if alternative vendors are required [267]. - The Company does not currently hedge interest rate exposures due to the relatively short maturities and investment-grade quality of its portfolio [180].

Company Performance - Cognex Corporation reported quarterly earnings of $0.20 per share, exceeding the Zacks Consensus Estimate of $0.15 per share, and up from $0.11 per share a year ago, representing an earnings surprise of 33.33% [1] - The company posted revenues of $229.68 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.61%, compared to year-ago revenues of $196.67 million [2] - Over the last four quarters, Cognex has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Movement and Outlook - Cognex shares have increased approximately 10.5% since the beginning of the year, outperforming the S&P 500's gain of 3.2% [3] - The future performance of Cognex's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][5] - The current consensus EPS estimate for the upcoming quarter is $0.15 on revenues of $230.11 million, and for the current fiscal year, it is $0.93 on revenues of $1.01 billion [7] Industry Context - The Electronics - Testing Equipment industry, to which Cognex belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Cognex's stock may also be influenced by the overall outlook for the industry [8]

Core Insights - Cognex reported strong fourth-quarter earnings, with revenue growth driven by logistics and semiconductor segments, surpassing analyst expectations [2][5] - The automotive sector faced challenges, impacting sales and emphasizing the need for operational efficiency [6][8] Financial Performance - Revenue for Q4 2024 reached $230 million, a 17% increase year over year, exceeding the analysts' estimate of $221 million [2][3] - Adjusted EPS rose 84% to $0.20, outperforming the estimate of $0.15 [2][3] - Operating margin improved to 13.4%, a significant increase of 690 basis points from 6.5% in Q4 2023 [3][7] - Free cash flow surged to $49.3 million, a 560% increase from $7.5 million in the previous year [3][7] Business Overview - Cognex specializes in machine vision products, primarily serving the automotive, logistics, and consumer electronics industries, which accounted for 65% of revenue in 2023 [4] - Recent product launches and strategic acquisitions have bolstered the company's market capabilities and innovation [4] Future Outlook - For Q1 2025, Cognex forecasts revenue between $200 million and $220 million, anticipating growth in logistics and semiconductor sectors, while facing challenges in the automotive sector [8] - Management expects adjusted gross margin in the high 60% range and an EBITDA margin of 12% to 15% [8]

Financial Performance - Revenue for Q4-24 was $230 million, a 17% increase from Q4-23, with a 12% increase excluding Moritex's contribution[6]. - Net income for Q4-24 was $28 million, a 152% increase from Q4-23, while adjusted net income rose by 84% to $35 million[12]. - Full year 2024 revenue grew by 9% to $915 million, or 1% excluding Moritex, with strong performance in Logistics and Semiconductor sectors[12]. - Cognex expects Q1-25 revenue to be between $200 million and $220 million, indicating stable year-on-year performance[11]. - Revenue for the three months ended December 31, 2024, was $229.684 million, a 16.8% increase from $196.670 million in the same period of 2023[21]. - Adjusted net income for the twelve months ended December 31, 2024, was $127,263 million, up from $127,393 million in 2023, indicating a slight decrease of 0.1%[27]. Profitability Metrics - Adjusted EBITDA margin expanded by 580 basis points year-on-year to 18.5% in Q4-24, driven by revenue growth and cost discipline[3]. - Gross margin for the full year 2024 was 68.4%, down from 71.8% in 2023, primarily due to the Moritex acquisition and unfavorable revenue mix[12]. - Gross profit margin for the three months ended December 31, 2024, was 68.7%, compared to 68.7% in the same period of 2023[21]. - Operating income for the three months ended December 31, 2024, was $30.840 million, with an operating margin of 13.4%[21]. - Adjusted EBITDA for the three months ended December 31, 2024, was $42,435 million, compared to $24,854 million for the same period in 2023, representing a significant increase of 70.7%[27]. - GAAP operating margin remained stable at 13.4% for both the three months ended December 31, 2024, and September 29, 2024[27]. Cash Flow and Shareholder Returns - The company generated $49 million in free cash flow in Q4-24, a $42 million improvement year-on-year[12]. - Cognex returned $57 million to shareholders in Q4-24 through stock repurchases and dividends[3]. - Free cash flow for the twelve months ended December 31, 2024, was $49,331 million, compared to $51,872 million in 2023, reflecting a decrease of 4.7%[28]. - Cash dividends per common share increased to $0.080 for the three months ended December 31, 2024, compared to $0.075 in the previous quarter[21]. Expenses and Costs - Research and development expenses were $32.538 million, representing 14.2% of revenue for the three months ended December 31, 2024[21]. - Selling, general, and administrative expenses were $94.481 million, accounting for 41.1% of revenue for the three months ended December 31, 2024[21]. - The company recorded acquisition and integration costs of $2,882 million for the twelve months ended December 31, 2024, compared to $2,295 million in 2023, an increase of 25.5%[27]. - The effective tax rate (GAAP) for the twelve months ended December 31, 2024, was 20.8%, compared to 19.1% in 2023, indicating an increase of 1.7 percentage points[28]. Company Overview and Strategy - Cognex has shipped over 4.5 million image-based products, generating more than $11 billion in cumulative revenue since its founding in 1981[38]. - The company focuses on machine vision technologies that enhance efficiency and quality in manufacturing and distribution across high-growth industrial markets[37]. - Cognex's solutions automate tasks such as locating, identifying, inspecting, and measuring discrete items, which include mobile phones and electric vehicle batteries[37]. - The company operates globally with offices and distributors across the Americas, Europe, and Asia[38]. - Cognex emphasizes the importance of machine vision in applications where human vision is inadequate for size, accuracy, or speed requirements[37]. - The company has a strong focus on innovation and product development to address critical manufacturing challenges[37]. Risks and Challenges - The company faces risks including technological obsolescence, competitive pressures, and challenges in attracting skilled employees[36]. - Cognex is exposed to economic and political risks associated with international sales, particularly in relation to trade disputes affecting China[36]. - Cognex's future capital needs and potential tax liabilities are areas of uncertainty that could impact financial results[36]. - The company emphasizes the importance of non-GAAP financial measures for evaluating performance and making comparisons over multiple periods[22].

NATICK, Mass., Feb. 12, 2025 /PRNewswire/ -- Cognex Corporation (NASDAQ: CGNX) today reported financial results for the fourth quarter and full year 2024. Table 1 below shows selected financial data for Q4-24 and the full year 2024 compared with Q4-23 and the full year 2023."Cognex delivered strong results in the fourth quarter, with revenue at the high end of our guidance range.  Growth was driven by continued momentum in our Logistics and Semiconductor businesses, including accelerated demand late in the ...

NATICK, Mass., Jan. 23, 2025 /PRNewswire/ -- Cognex Corporation (NASDAQ: CGNX) will release earnings for the fourth quarter of 2024 on Wednesday, February 12, 2025, after market close. The Company will host a conference call on Thursday, February 13, 2025 at 8:30 a.m. Eastern Standard Time (EST), to discuss the results. Access to the conference call, and a replay that will be available following the call, may be found on the Cognex Investor Relations website at https://www.cognex.com/investor. The telephone ...

DataMan 290 and 390 barcode readers, backed by industry-leading customer support, deliver unmatched reliability and ease of useNATICK, Mass., Jan. 14, 2025 /PRNewswire/ -- Cognex Corporation (NASDAQ: CGNX), the leader in industrial machine vision, today announced the launch of the DataMan® 290 and 390 barcode readers. Thanks to innovative AI technology, these readers deliver reliable decoding performance across a broad range of manufacturing applications. In addition, by making setup and deployment easy and ...

These three stocks have game-changing megatrends behind them, which aren't always immediately apparent when first looking at the stocks. Here's the hidden growth potential in machine-vision company Cognex Corporation (CGNX 0.68%), positioning and workflow-technology company Trimble (TRMB 0.60%), and Delta Air Lines (DAL -0.26%), and why all three are great stocks to buy for 2025.AI and automation will drive demand for Cognex's machine-vision solutionsIt's not easy when customers in your three major end mark ...