Cognex machine vision brought record revenue

Cognex Corp. (CGNX) last week published a report for the fourth quarter and the whole of 2021. The company received record revenue and double-digit profit growth. According to the results of the entire last year, Cognex increased revenue by 28% year-on-year to $1.037 billion, net profit increased by 59% to $176.1 million, earnings per diluted share reached $1 (+56%). The company has reached record levels despite increased development and sales costs. 

At the end of 2021, cash and equivalent reserves amounted to $907 million, with no debts. In addition, Cognex bought $162 million worth of shares and paid $43 million in dividends during the year. As a result, Cognex expects double-digit sales growth in the range of $265-$285 million while maintaining a gross margin of 70%. However, it is still difficult to predict sales for the entire year because Cognex’s revenue depends on orders from household appliances and other electronics, which are expanding production in the second and third quarters to prepare for the sales season in the fourth quarter. 

Last year’s strong performance was because Cognex managed to reduce the delivery time of components from suppliers. As a result, the company, taking advantage of increased demand, could produce and ship more products to customers is a positive signal indicating the continuation of solid indicators in 2022. Overall, Cognex’s addressable markets show a positive picture. 

Demand for Cognex logistics solutions has grown, investments in equipping e-commerce facilities are increasing, and sales of electric vehicles are growing. Cognex manufactures machine vision systems for various equipment: from smart video cameras for sorting machines to testing semiconductor production lines. Cognex solutions in the industry on automated production lines.