The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Crane NXT (NYSE:CXT) and the rest of the specialized technology stocks fared in Q3.
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 very strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.2% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.4% since the latest earnings results.
Crane NXT (NYSE:CXT)
Born from a corporate transformation completed in 2023, Crane NXT (NYSE:CXT) provides specialized technology solutions for payment processing, banknote security, and authentication systems for financial institutions and businesses.
Crane NXT reported revenues of $445.1 million, up 10.3% year on year. This print exceeded analysts’ expectations by 3.6%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ revenue estimates.
Aaron W. Saak, Crane NXT's President and Chief Executive Officer, stated: "Our third quarter results continue to show progress in the evolution of Crane NXT, with accelerating growth in our SAT segment, strong margins in CPI, and robust free cash flow. Given the sustained momentum in SAT, we are raising our full year sales guidance. Additionally, we are narrowing our Adjusted EPS guidance range primarily driven by ongoing macroeconomic uncertainty impacting demand in CPI."
The stock is down 20.5% since reporting and currently trades at $51.04.
Is now the time to buy Crane NXT? Access our full analysis of the earnings results here, it’s free.
Best Q3: 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 $49.17 million, up 11.7% year on year, outperforming analysts’ expectations by 4.8%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 12.7% since reporting. It currently trades at $38.55.
Is now the time to buy Napco? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: 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 $276.9 million, up 18% year on year, exceeding analysts’ expectations by 5.2%. It was a satisfactory quarter as it also posted an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ full-year EPS guidance estimates.
As expected, the stock is down 16.4% since the results and currently trades at $39.67.
Read our full analysis of Cognex’s results here.
Mirion (NYSE:MIR)
With its technology protecting workers in over 130 countries and equipment used in 80% of cancer centers worldwide, Mirion Technologies (NYSE:MIR) provides radiation detection, measurement, and monitoring solutions for medical, nuclear energy, defense, and scientific research applications.
Mirion reported revenues of $223.1 million, up 7.9% year on year. This number met analysts’ expectations. Overall, it was an exceptional quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates.
The stock is up 2.3% since reporting and currently trades at $25.77.
Read our full, actionable report on Mirion here, it’s free.
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 $119.2 million, up 23.2% year on year. This result surpassed analysts’ expectations by 5.8%. It was a very strong quarter as it also put up a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.
PAR Technology achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 3.4% since reporting and currently trades at $32.05.
Read our full, actionable report on PAR Technology here, it’s free.
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