Thesis
Cognex (CGNX) continues to face revenue growth challenges due to market conditions. Continued deterioration in demand for its products from both the consumer electronics and automotive industries resulted in revenue contraction of 21% in the quarter.
Going into Q4, the company expects continued revenue contraction. The outlook for the year will be the company's first full year of revenue contraction since 2011. While this appears to be a bearish sign on the surface, I think the tide could shift once economic conditions facing both consumer electronics and automotive turns around.
Cognex does have a