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As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the specialized technology industry, including OSI Systems (NASDAQ:OSIS) 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 11% since the latest earnings results.
OSI Systems (NASDAQ:OSIS)
Founded in 1987 and operating across three distinct divisions, OSI Systems (NASDAQ:OSIS) designs and manufactures specialized electronic systems for security screening, healthcare monitoring, and optoelectronic applications.
OSI Systems reported revenues of $419.8 million, up 12.5% year on year. This print exceeded analysts’ expectations by 3.3%. Overall, it was a strong quarter for the company with a decent beat of analysts’ EPS estimates and a narrow beat of analysts’ full-year EPS guidance estimates.
The stock is up 7.4% since reporting and currently trades at $181.49.
Is now the time to buy OSI Systems? 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 an impressive 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 2.2% since reporting. It currently trades at $62.03.