Cognex Clocks 29% Revenue Decline In Q1, Mirroring Broader Macroeconomic Softness

Cognex Corporation CGNX reported a first-quarter FY23 revenue decline of 28.8% to $201.12 million, beating the consensus of $192.01 million.
Adjusted EPS was $0.13, beating the consensus of $0.09.
Revenue declined due to lower capacity expansion projects from a few large e-commerce customers and the impact of broader macroeconomic softness compared to a year ago.
The gross margin declined to 71% compared with 72% Y/Y, owing to cost deleverage from lower revenue.
Net income in the quarter under review plunged almost 62% Y/Y to $25.62 million.
As of April 2, 2023, Cognex's financial position continued to be strong, with $844 million in cash and investments and no debt.
"In the first quarter our largest e-commerce customers continued to absorb excess capacity and our factory automation customers remained cautious with capital investment," said Robert J. Willett, CEO of Cognex.
Dividend: Cognex declared a quarterly cash dividend of $0.07 per share, payable on June 2, 2023, to all shareholders of record at the close of business on May 19, 2023.
Outlook: For Q2, the company expects revenues of $225 million-$245 million (consensus $235.74 million).
The gross margin for Q2 is expected to be in the company's mid-70% long-term target range.
Price Action: CGNX shares are trading higher by 6.67% at $50.51 on the last check Thursday.