Q2 2024 Earnings Summary
Reported on Jan 7, 2025 (After Market Close)
Pre-Earnings Price$39.08Last close (Aug 1, 2024)
Post-Earnings Price$38.01Open (Aug 2, 2024)
Price Change
$-1.07(-2.74%)
- Logistics revenue grew strong double digits in the first half of 2024, with growth expected to continue in the second half, driven by broad-based demand across e-commerce, parcel and post customers, and strong new customer activity with potential to become large contributors over time. ,
- The Semiconductor business is experiencing significant growth, with customers making significant investments in high-bandwidth memory to support AI; semiconductor revenue is growing more than 2x our long-term growth target.
- The Emerging Customer Initiative is progressing, with the first cohort steadily increasing monthly bookings, and the second cohort of trainees now in training, positioning the company for future growth.
- Cognex is facing continued weakness in the consumer electronics market, with slow end-user demand and particular weakness in China, leading to tempered expectations for consumer electronics in 2024 and uncertainty around project size and timing. Additionally, one large smartphone player gaining market share cannot be served due to regulatory reasons, and the weakness is broad-based, affecting multiple customers and regions.
- Revenue decline in China has continued for the seventh consecutive quarter, and this negative trend is expected to continue, indicating ongoing challenges in a key market. Furthermore, Europe is showing weakness, especially in the automotive sector, contributing to overall regional weakness.
- The company's emerging customer initiative is ramping more slowly than expected, due to end markets being less responsive than anticipated and macro softness. This shift in revenue ramp impacts expectations for bookings and revenue generation from this initiative in the second half of the year, potentially delaying the anticipated $50 million of incremental revenue.