It's been a brutal year for shareholders in machine vision company Cognex (NASDAQ: CGNX). The stock is down nearly 45% this year as the company's main end markets (automotive, consumer electronics, and logistics) have suffered in line with ongoing supply chain challenges and slowing consumer spending. If that wasn't enough, a fire at a primary contractor damaged Cognex's inventory of components; the last thing needed in the current environment of component shortages. That said, some recent developments help point to many of the reasons why the stock remains attractive for long-term growth-oriented investors. 

Cognex's machine vision solutions replace the human eye in automating manufacturing and distribution processes. Examples include fitting screens on mobile phones or logistics in e-commerce warehousing. There are two reasons to feel more positive about Cognex stock, and they both speak to the long-term case for the stock. The first is management's recent upgrade to revenue expectations for its third quarter. Back in the second-quarter earnings report management gave disappointing guidance of revenue of $160 million to $180 million for the third quarter. Management put that down to "the June fire at the company's primary contract manufacturing site and lower expected revenue from e-commerce logistics."

Fast forward to the recent update, and management upgraded guidance to revenue of $195 million to $205 million. Management put the guidance increase down to its ability to deliver on customer orders "sooner than anticipated due to strong progress in replenishing component inventory destroyed in the previously disclosed fire."

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Source Fool.com