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Q4 Earnings Outperformers: Crane NXT (NYSE:CXT) And The Rest Of The Specialized Technology Stocks

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Q4 Earnings Outperformers: Crane NXT (NYSE:CXT) And The Rest Of The Specialized Technology Stocks

Looking back on specialized technology stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Crane NXT (NYSE:CXT) and its peers.

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 8.5% 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 $399.1 million, up 11.8% year on year. This print fell short of analysts’ expectations by 2.7%. Overall, it was a slower quarter for the company with a miss of analysts’ organic revenue estimates and EPS in line with analysts’ estimates.

Crane NXT Total Revenue
Crane NXT Total Revenue

The stock is down 9.5% since reporting and currently trades at $53.01.

Read our full report on Crane NXT 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 Total Revenue
PAR Technology Total Revenue

PAR Technology pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 5.3% since reporting. It currently trades at $63.90.

Is now the time to buy PAR Technology? Access our full analysis of the earnings results here, it’s free.