Why Shares in Cognex Are Slumping Today
Shares of machine vision company Cognex (NASDAQ: CGNX) slumped by nearly 16% in Friday morning's first hour of trading. As of 12:46 p.m., they were still down by 14.4%.
The slide was set off by the weaker-than-expected set of third-quarter results that Cognex delivered Thursday after the close, as well as management's disappointing near-term outlook. Revenue came in at $285 million for the third quarter. That was right in the center of its guidance range of $275 million to $295 million, but its gross margin of 70% was below the bottom of the low-to-mid 70% guidance range the company gave in the second quarter.
Cognex's automotive end market is coming back nicely. Image source: Getty Images.
Source Fool.com
