Q4 Earnings Outperformers: Zebra (NASDAQ:ZBRA) And The Rest Of The Specialized Technology Stocks

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how specialized technology stocks fared in Q4, starting with Zebra (NASDAQ:ZBRA).

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 11% since the latest earnings results.

Zebra (NASDAQ:ZBRA)

Taking its name from the black and white stripes of barcodes, Zebra Technologies (NASDAQ:ZBRA) provides barcode scanners, mobile computers, RFID systems, and other data capture technologies that help businesses track assets and optimize operations.

Zebra reported revenues of $1.33 billion, up 32.2% year on year. This print exceeded analysts’ expectations by 1.2%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ organic revenue estimates.

The stock is down 19.3% since reporting and currently trades at $284.64.

Read our full report on Zebra here, it’s free.

Best Q4: PAR Technology (NYSE:PAR)

Originally founded in 1968 as a defense contractor for the U.S. government, PAR Technology (NYSE:PAR) provides cloud-based software, payment processing, and hardware solutions that help restaurants manage everything from point-of-sale to customer loyalty programs.

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. The market seems content with the results as the stock is up 2.6% since reporting. It currently trades at $62.30.

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)

Protecting everything from schools to government facilities since 1969, 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 37% since the results and currently trades at $23.12.

Read our full analysis of Napco’s results here.

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 result beat analysts’ expectations by 4%. It was a strong quarter as it also recorded a solid beat of analysts’ EPS estimates.

The stock is down 21.7% since reporting and currently trades at $30.74.

Read our full, actionable report on Cognex here, it’s free.

Arlo Technologies (NYSE:ARLO)

Originally spun off from networking equipment maker Netgear in 2018, Arlo Technologies (NYSE:ARLO) provides cloud-based smart security devices and subscription services that help consumers and businesses monitor and protect their homes, properties, and loved ones.

Arlo Technologies reported revenues of $121.6 million, down 10% year on year. This print was in line with analysts’ expectations. Zooming out, it was a mixed quarter with EPS guidance for next quarter ahead of analysts' estimates.

Arlo Technologies had the slowest revenue growth among its peers. The stock is down 12.4% since reporting and currently trades at $10.45.

Read our full, actionable report on Arlo Technologies here, it’s free.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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