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.
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.
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.
