Cognex Corporation (CGNX) Bundle
A Brief History of Cognex Corporation
Cognex Corporation, a leading provider of vision systems, software, and sensors, has seen significant growth and development since its inception. Founded in 1981, Cognex specializes in machine vision technology, which is used in various industries, including manufacturing and logistics. The company went public in 1997 and has been listed on the NASDAQ under the ticker symbol CGNX.
Recent Financial Performance
As of September 29, 2024, Cognex reported revenues of $234.7 million for the third quarter, marking an increase of 19% compared to $197.2 million in the same quarter of 2023. For the nine-month period, revenues rose to $684.8 million, up from $640.9 million year-over-year, representing a 7% increase.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Revenue | $234.7M | $197.2M | 19% | $684.8M | $640.9M | 7% |
| Net Income | $29.6M | $18.9M | 56% | $77.8M | $102.0M | (24%) |
| Gross Margin | 68% | 72% | (4%) | 68% | 73% | (5%) |
Stock Performance and Share Repurchase
Cognex has actively managed its stock repurchase program, with a remaining authorization of $309 million as of September 29, 2024. The company repurchased 555,000 shares at a total cost of approximately $23.8 million during the nine-month period ended September 29, 2024. This follows a more significant repurchase of 1.16 million shares at a cost of $59.6 million in the prior year.
Acquisitions and Strategic Initiatives
In 2023, Cognex completed the acquisition of Moritex, which has contributed to approximately 10% of total revenue for the quarter ended September 29, 2024. This acquisition is part of Cognex's strategy to enhance its capabilities in machine vision and expand its market reach.
Operating Expenses
Cognex's operating expenses have also seen changes, with total operating expenses reaching $127.8 million for the third quarter of 2024, up from $112.1 million in the same period of 2023. Research, development, and engineering expenses rose to $36.2 million, accounting for 15% of total revenue, while selling, general, and administrative expenses increased to $91.6 million for the quarter.
| Operating Expenses | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Operating Expenses | $127.8M | $112.1M | 14% |
| Research, Development & Engineering | $36.2M | $33.6M | 8% |
| Selling, General & Administrative | $91.6M | $78.5M | 16% |
Future Outlook
With a commitment to innovation and a strong financial position, Cognex is poised to continue its growth trajectory in the machine vision industry. The company's focus on enhancing its product offerings and expanding into new markets will be critical in maintaining its competitive edge.
As of September 29, 2024, the company had an effective tax rate of 19%, a notable decrease from 30% in the previous year, reflecting improved tax efficiencies and strategic financial planning.
A Who Owns Cognex Corporation (CGNX)
Shareholder Composition
As of 2024, the ownership of Cognex Corporation (CGNX) is distributed among institutional investors, individual investors, and company insiders. The following table details the shareholder composition:
| Shareholder Type | Percentage Ownership | Number of Shares (Approx.) |
|---|---|---|
| Institutional Investors | 70.3% | 120,000,000 |
| Individual Investors | 18.5% | 31,500,000 |
| Company Insiders | 11.2% | 19,000,000 |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Cognex Corporation as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 15,000,000 | 8.7% |
| The Vanguard Group, Inc. | 14,500,000 | 8.4% |
| State Street Corporation | 10,000,000 | 5.8% |
| Invesco Ltd. | 8,000,000 | 4.6% |
| Fidelity Investments | 7,500,000 | 4.3% |
Insider Ownership
Insider ownership is also significant at Cognex Corporation. The following table summarizes the ownership of key executives and board members:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Robert J. Willet | CEO | 5,000,000 | 2.9% |
| G. Beck | CFO | 3,500,000 | 2.0% |
| Board of Directors | Various | 10,000,000 | 5.8% |
Recent Stock Performance
The stock performance of Cognex Corporation reflects its ownership structure. As of September 29, 2024, the stock price is approximately $45.00, with a market capitalization of around $7.7 billion. The stock has seen a year-to-date performance increase of approximately 12%. The following table illustrates the stock performance over the past year:
| Period | Price | Market Capitalization |
|---|---|---|
| September 2023 | $40.00 | $6.8 billion |
| December 2023 | $42.00 | $7.1 billion |
| March 2024 | $43.00 | $7.3 billion |
| June 2024 | $45.00 | $7.7 billion |
Dividends and Share Repurchase Program
Cognex Corporation has a history of returning capital to shareholders through dividends and share repurchase programs. In 2024, the company declared a dividend of $0.225 per share. The following table summarizes the dividend payments and share repurchase activity:
| Year | Dividend per Share | Shares Repurchased | Total Cost of Repurchases |
|---|---|---|---|
| 2023 | $0.210 | 1,157,000 | $59,640,000 |
| 2024 | $0.225 | 555,000 | $23,841,000 |
Conclusion on Ownership Dynamics
The ownership dynamics of Cognex Corporation reflect a strong institutional backing, with key stakeholders actively participating in its governance and strategic direction. The company’s performance and shareholder returns continue to align with the interests of its diverse investor base.
Cognex Corporation (CGNX) Mission Statement
Cognex Corporation is committed to providing the most innovative machine vision products and solutions that improve the efficiency and quality of manufacturing and distribution processes. The company aims to be the leading global provider of machine vision technologies, helping customers achieve enhanced productivity through automated inspection, identification, and guidance systems. This mission is underpinned by a dedication to continuous improvement, customer satisfaction, and a focus on long-term growth.
Financial Overview
As of September 29, 2024, Cognex Corporation reported total assets of $2,063,247,000, an increase from $2,017,812,000 in December 2023. The company’s total liabilities stood at $496,221,000, while total shareholders’ equity was $1,567,026,000.
Revenue Performance
For the third quarter of 2024, Cognex reported revenue of $234,742,000, reflecting a 19% increase from $197,241,000 in the same quarter of 2023. For the nine-month period ending September 29, 2024, the revenue was $684,831,000, compared to $640,877,000 in the prior year, marking a 7% increase.
| Period | Revenue ($000) | Change (%) |
|---|---|---|
| Q3 2024 | 234,742 | 19% |
| Q3 2023 | 197,241 | - |
| 9M 2024 | 684,831 | 7% |
| 9M 2023 | 640,877 | - |
Gross Margin Analysis
The gross margin for the third quarter of 2024 was 68%, down from 72% in the third quarter of 2023. This decline can be attributed to the acquisition of Moritex, which introduced lower-margin products into the revenue mix.
Operating Expenses
Operating expenses for Q3 2024 totaled $127,835,000, a 14% increase compared to $112,137,000 in Q3 2023. The nine-month operating expenses amounted to $383,710,000, up from $348,224,000 in the prior year.
| Expense Category | Q3 2024 ($000) | Q3 2023 ($000) | Change (%) |
|---|---|---|---|
| Research, Development, and Engineering | 35,210 | 32,580 | 8% |
| Selling, General, and Administrative | 92,625 | 82,307 | 13% |
| Total Operating Expenses | 127,835 | 112,137 | 14% |
Net Income
Cognex reported a net income of $29,591,000 for Q3 2024, compared to $18,916,000 for Q3 2023. For the nine-month period, net income was $77,825,000, down from $102,005,000 in the prior year.
Shareholder Returns
The company declared dividends of $0.075 per share for each quarter in 2024, totaling $38,619,000 year-to-date. Cognex has a stock repurchase program authorized for $500 million, with $309,051,000 remaining as of September 29, 2024.
Geographic Revenue Breakdown
The following table presents the geographic revenue distribution for Cognex Corporation for the three-month periods ended September 29, 2024, and October 1, 2023:
| Region | Q3 2024 Revenue ($000) | Q3 2023 Revenue ($000) | Change (%) |
|---|---|---|---|
| Americas | 82,293 | 80,156 | 3% |
| Europe | 57,246 | 51,827 | 10% |
| Greater China | 45,301 | 34,485 | 31% |
| Other Asia | 49,902 | 30,773 | 62% |
The company continues to experience growth in various sectors, particularly in the logistics and semiconductor industries, despite challenges in the automotive segment.
How Cognex Corporation (CGNX) Works
Overview of Operations
Cognex Corporation is a leading provider of machine vision products and solutions that enhance automation in manufacturing and distribution. The company focuses on improving efficiency and quality across various industries, including automotive, logistics, consumer electronics, and pharmaceuticals.
Financial Performance
As of the third quarter of 2024, Cognex reported total revenue of $234,742,000, reflecting a 19% increase compared to the same period in 2023. The revenue growth was attributed to the acquisition of Moritex Corporation, which contributed approximately 10% to total revenue for the quarter.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $234,742,000 | $197,241,000 | $37,501,000 (19%) |
| Gross Margin | 68% | 72% | -4% |
| Operating Income | 13% of Revenue | 16% of Revenue | -3% |
| Net Income | $29,591,000 | $18,916,000 | $10,675,000 (56%) |
| EPS (Diluted) | $0.17 | $0.11 | $0.06 (55%) |
Revenue Breakdown
The following table outlines disaggregated revenue by geographic area for the three-month period ended September 29, 2024:
| Region | Q3 2024 Revenue | Q3 2023 Revenue | Change |
|---|---|---|---|
| Americas | $82,293,000 | $80,156,000 | $2,137,000 (3%) |
| Europe | $57,246,000 | $51,827,000 | $5,419,000 (10%) |
| Greater China | $45,301,000 | $34,485,000 | $10,816,000 (31%) |
| Other Asia | $49,902,000 | $30,773,000 | $19,129,000 (62%) |
Operating Expenses
Operating expenses for Q3 2024 totaled $127,835,000, which is a 14% increase compared to Q3 2023. This rise was driven primarily by investments in the “Emerging Customer” sales initiative and costs associated with the Moritex acquisition.
| Expense Type | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Research, Development, and Engineering | $35,210,000 | $32,580,000 | $2,630,000 (8%) |
| Selling, General, and Administrative | $92,625,000 | $82,307,000 | $10,318,000 (13%) |
Cash Flow and Investments
For the nine-month period ended September 29, 2024, Cognex generated net cash provided by operating activities of $97,677,000. Cash flows from investing activities were influenced by a significant acquisition.
| Cash Flow Activity | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $97,677 |
| Purchases of Property, Plant, and Equipment | ($12,970) |
| Net Cash Used in Investing Activities | ($41,194) |
| Net Cash Used in Financing Activities | ($62,665) |
| Ending Cash and Cash Equivalents | $197,075 |
Stock Repurchase and Dividends
Cognex has a stock repurchase program authorized for up to $500,000,000. As of September 29, 2024, the company repurchased 555,000 shares at a total cost of $23,841,000, leaving a remaining balance of $309,051,000 for future repurchases.
The company also paid dividends of $0.225 per share, totaling $38,619,000 for the nine-month period ended September 29, 2024.
Income Taxes
The effective tax rate for Cognex was 19% for both the three-month and nine-month periods ended September 29, 2024, compared to 30% and 16% for the same periods in 2023, respectively.
| Tax Information | Q3 2024 | Q3 2023 |
|---|---|---|
| Income Before Tax | $36,555,000 | $27,002,000 |
| Income Tax Expense | $6,964,000 | $8,086,000 |
| Effective Tax Rate | 19% | 30% |
How Cognex Corporation (CGNX) Makes Money
Revenue Sources
Cognex Corporation generates revenue primarily through the sale of machine vision products and services. In 2024, the total revenue was $684,831,000 for the nine-month period ending September 29, 2024, representing a 7% increase from $640,877,000 in the same period in 2023. The revenue for the third quarter alone was $234,742,000, which marked a 19% increase from $197,241,000 in Q3 2023.
| Period | Total Revenue (in thousands) | Change (%) |
|---|---|---|
| Q3 2024 | $234,742 | 19% |
| Q3 2023 | $197,241 | - |
| 9M 2024 | $684,831 | 7% |
| 9M 2023 | $640,877 | - |
Product Segmentation
The revenue from standard products and services in Q3 2024 was $203,182,000, while application-specific customer solutions contributed $31,560,000. For the nine-month period, standard products and services revenue was $591,670,000, and application-specific solutions accounted for $93,161,000.
| Period | Standard Products & Services (in thousands) | Application-Specific Solutions (in thousands) |
|---|---|---|
| Q3 2024 | $203,182 | $31,560 |
| Q3 2023 | $170,104 | $27,137 |
| 9M 2024 | $591,670 | $93,161 |
| 9M 2023 | $555,831 | $85,046 |
Geographic Revenue Breakdown
Revenue from different geographic regions provides insight into Cognex's market diversification. In Q3 2024, the Americas contributed $82,293,000 (35% of total revenue), Europe $57,246,000 (24%), Greater China $45,301,000 (19%), and Other Asia $49,902,000 (21%).
| Region | Q3 2024 Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Americas | $82,293 | 35% |
| Europe | $57,246 | 24% |
| Greater China | $45,301 | 19% |
| Other Asia | $49,902 | 21% |
Cost Structure and Profitability
The cost of revenue for Q3 2024 was $75,343,000, leading to a gross margin of $159,399,000, representing 68% of total revenue. This was a decrease from a gross margin percentage of 72% in Q3 2023.
| Period | Cost of Revenue (in thousands) | Gross Margin (in thousands) | Gross Margin (%) |
|---|---|---|---|
| Q3 2024 | $75,343 | $159,399 | 68% |
| Q3 2023 | $54,467 | $142,774 | 72% |
Operating Expenses
Operating expenses for Q3 2024 totaled $127,835,000, reflecting a 14% increase from $112,137,000 in Q3 2023. This increase was driven by higher selling, general, and administrative expenses as well as research and development costs.
| Period | Operating Expenses (in thousands) | Change (%) |
|---|---|---|
| Q3 2024 | $127,835 | 14% |
| Q3 2023 | $112,137 | - |
Net Income
Net income for Q3 2024 was $29,591,000, representing a significant increase compared to $18,916,000 in Q3 2023. The net income per diluted share was $0.17 in Q3 2024, compared to $0.11 in the prior year.
| Period | Net Income (in thousands) | Net Income per Diluted Share |
|---|---|---|
| Q3 2024 | $29,591 | $0.17 |
| Q3 2023 | $18,916 | $0.11 |
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Article updated on 8 Nov 2024
Resources:
- Cognex Corporation (CGNX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Cognex Corporation (CGNX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cognex Corporation (CGNX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.