By: Scott Davis
CGNX is one of the few true secular growers in industrials, though near-term the company is struggling with a deepening recession in its key auto and consumer electronics end-markets (which collectively make up 2/3 of the business). 2Q followed a familiar pattern we’ve seen across our group so far this quarter, with earnings themselves largely ok, but a cut in the forward look. In CGNX’s case, that cut was fairly steep, with 3Q guidance calling for revenues down 20-25% y/y. To be fair, it’s a small company with less than $1B of annual revenue and can be very volatile quarter to quarter.