Earnings Analysis for CGNX – Last Three Years

Revenue Analysis:

Total and Operating Revenue: CGNX showed a varying trend in total revenue, moving from $196.67 million in September 2023 and significantly increasing to $242.51 million in June 2024, before slightly dropping to $210.79 million by March 2024.

Gross Profit Margins: Correspondingly, the gross profit has also shown fluctuations aligning with revenue changes, with a peak of $179.68 million in June 2024 reflecting the highest revenue period.

Cost Management:

Cost of Revenue: The cost of revenue generally followed the trend in revenues, increasing from $54.47 million in September 2023 to $62.83 million in June 2024, and slightly reducing thereafter.

Operating Expense and Total Expenses: Operating expenses and total expenses also mirrored this pattern, indicating that CGNX’s costs are closely tied to its operational scale and revenue generation.

Profitability Analysis:

EBITDA and Operating Income: EBITDA and Operating Income peaked in June 2024, with EBITDA at $67.61 million and Operating Income at $62.68 million, demonstrating a period of strong operational efficiency.

Pretax Income and Net Income: The pretax and net income metrics also peaked in June 2024, with net income reaching $57.47 million. This period likely represents the most profitable quarter in the timeframe observed.

Cash Flow Indicators:

Reconciled Depreciation: Depreciation expenses were fairly steady, hovering around $4-5 million through the periods, indicating consistent capital expenditure depreciation. There was no direct data on Interest Expense provided.

Taxation:

Tax Rate, Tax Provision, and Tax Effect of Unusual Items: Tax rates have varied, influencing the overall tax provision, which ranged from a high of $10.30 million in June 2024 to a low of $0.60 million in March 2024. Tax effects of unusual items also varied, impacting net tax liabilities differently across quarters.

Shareholder Metrics:

Earnings Per Share (EPS): The Diluted and Basic EPS peaked at $0.33 in June 2024, mirroring the high net income during that period. The number of shares (both Diluted and Basic) has remained relatively constant, indicating stability in the company’s equity structure.

Net Income Available to Common Stockholders: This metric directly paralleled the net income figures, suggesting that most of the net income is attributable to common stockholders.

Conclusion:

CGNX has shown significant financial fluctuations over the observed periods, with a peak in mid-2024. Revenue and cost management appear synchronized with operational scale. The company’s profitability metrics, particularly in June 2024, suggest that CGNX can achieve strong results under favorable conditions. Given these insights, shareholders and potential investors should monitor CGNX’s operational efficiency and cost management closely, as these are pivotal in driving the company’s profitability. Future strategies could include focusing on efficiency and possibly stabilizing the cost of revenue in relation to fluctuating sales.

Appendices:

Data used for this analysis is populated from the financial records of CGNX for the years 2023 and 2024 as provided in the tables above. Further detailed calculation sheets and graphs are recommended for those needing deeper financial analysis, including month-to-month trends and ratio analyses.