Q1 2024 Earnings Summary
Reported on Jan 7, 2025
Pre-Earnings PriceN/ADate unavailable
Post-Earnings PriceN/ADate unavailable
Price ChangeN/A
- Logistics market is showing signs of recovery, with logistics revenue growing 24% year-over-year in Q1, and positive conversations indicating early recovery. The company secured a large logistics project that includes recurring revenue, contributing to optimism in this end market.
- Semiconductor business is strengthening, with Cognex being strong in wafer processes and applications like high bandwidth memory. The company reacts faster to positive outlooks due to its short-cycle business model.
- India presents a huge growth opportunity, being one of Cognex's fastest-growing markets with significant potential and strong growth dynamics.
- Automotive market slowdown impacting revenue: The automotive sector, which was CGNX's largest and best-performing market last year, representing 25% of revenue, is entering a more difficult period. EV battery investments are being scaled back or pushed out, leading to a slowdown and challenges in this market for the year.
- Continued revenue decline in China: CGNX has experienced revenue decline in China for six consecutive quarters, with a 17% year-over-year drop in Q1, excluding Moritex. The decline is broad-based and most pronounced in the automotive sector, adding to the challenges in this important geographic market.
- Flat logistics revenue excluding large project: While CGNX reported growth in logistics revenue due to a large project, the base logistics business remained flat year-over-year, indicating underlying weakness or stagnation in this segment. The optimism for growth is based on the sales funnel rather than actual performance.
Research analysts covering COGNEX.