Cognex Reports Third Quarter 2024 Results

Core Insights - Cognex Corporation reported third quarter 2024 financial results, showing a year-on-year revenue growth of 19%, with a 7% increase when excluding the contribution from Moritex, which was acquired in October 2023 [5][6] - The company experienced a sequential revenue decrease of 2% from Q2-24, primarily due to seasonal factors in the Consumer Electronics sector [5][8] - The CEO highlighted ongoing strength in the Logistics and Semiconductor markets, while noting softness in the broader factory automation business, particularly in Automotive [2][5] Financial Performance - Revenue for Q3-24 was $235 million, compared to $197 million in Q3-23, reflecting a 19% increase [6] - Adjusted EBITDA margin for Q3-24 was 17.6%, down from 19.9% in Q2-24, attributed to lower gross margins and increased operating expenses [6][8] - Net income for Q3-24 was $30 million, a 56% increase from Q3-23, but an 18% decline from Q2-24 [5][6] Cost Management - Operating expenses were $128 million, a 14% increase from Q3-23, but slightly down from Q2-24 [5][6] - The company managed to deliver its highest quarterly operating cash flow and free cash flow since Q4-2022, generating $56 million in cash from operating activities and $52 million in free cash flow [7][8] Acquisition Impact - The financial results included four months of Moritex's financials, contributing 12 percentage points to the revenue growth [5][6] - The acquisition of Moritex has led to increased operating expenses due to integration costs and amortization of intangible assets [5][6] Future Outlook - For Q4-24, Cognex expects revenue to be between $210 million and $230 million, indicating a sequential decrease due to Consumer Electronics seasonality [8] - The company anticipates adjusted gross margin to be in the high 60% range and adjusted EBITDA margin between 14% and 17% [8]