Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Cognex (NASDAQ:CGNX) and the best and worst performers in the specialized technology industry.
Companies in this sector, especially if they invest wisely, could see demand tailwinds as the world moves towards more IoT (Internet of Things), automation, and analytics. Enterprises across most industries will balk at taking these journeys solo and will enlist companies with expertise and scale in these areas. However, headwinds could include rising competition from larger technology firms, as digitization lowers barriers to entry in the space. Additionally, companies in the space will likely face evolving regulatory scrutiny over data privacy, particularly for surveillance and security technologies. This could make companies have to continually pivot and invest.
The 8 specialized technology stocks we track reported a mixed Q4. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.7% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 13.8% since the latest earnings results.
Cognex (NASDAQ:CGNX)
Founded in 1981 when computer vision was in its infancy, Cognex (NASDAQ:CGNX) develops machine vision systems and software that help manufacturers and logistics companies automate quality inspection and tracking of products.
Cognex reported revenues of $229.7 million, up 16.8% year on year. This print exceeded analysts’ expectations by 4%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EPS estimates.
The stock is down 22.5% since reporting and currently trades at $30.42.
Is now the time to buy Cognex? Access our full analysis of the earnings results here, it’s free.
Best Q4: PAR Technology (NYSE:PAR)
Operating at the intersection of food service and technology since 1968, PAR Technology (NYSE:PAR) provides cloud-based software and hardware solutions for restaurants, including point-of-sale systems, customer loyalty platforms, and digital ordering technologies.
PAR Technology reported revenues of $105 million, up 50.2% year on year, outperforming analysts’ expectations by 4.3%. The business had an incredible quarter with a solid beat of analysts’ ARR and EPS estimates.
PAR Technology pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 3.9% since reporting. It currently trades at $58.32.
Is now the time to buy PAR Technology? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Napco (NASDAQ:NSSC)
With roots dating back to 1969 and a focus on protecting people and property, Napco Security Technologies (NASDAQ:NSSC) manufactures electronic security devices, access control systems, and communication services for intrusion and fire alarm systems.
Napco reported revenues of $42.93 million, down 9.7% year on year, falling short of analysts’ expectations by 13.9%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
Napco delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 32.7% since the results and currently trades at $24.71.
Read our full analysis of Napco’s results here.
Crane NXT (NYSE:CXT)
Born from a corporate separation in 2023 to focus on specialized technology, Crane NXT (NYSE:CXT) provides technology solutions for payment processing, banknote security, and authentication systems for financial institutions and businesses.
Crane NXT reported revenues of $399.1 million, up 11.8% year on year. This print came in 2.7% below analysts' expectations. Overall, it was a slower quarter as it also recorded a miss of analysts’ organic revenue estimates and EPS in line with analysts’ estimates.
The stock is down 11.1% since reporting and currently trades at $52.11.
Read our full, actionable report on Crane NXT here, it’s free.
Zebra (NASDAQ:ZBRA)
Named after the black and white stripes of its barcode products, Zebra Technologies (NASDAQ:ZBRA) provides barcode scanners, mobile computers, RFID systems, and printers that help businesses track inventory, assets, and people in real-time.
Zebra reported revenues of $1.33 billion, up 32.2% year on year. This result topped analysts’ expectations by 1.2%. Aside from that, it was a mixed quarter as it also produced a solid beat of analysts’ organic revenue estimates.
The stock is down 22.6% since reporting and currently trades at $273.02.
Read our full, actionable report on Zebra here, it’s free.
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