In This Article:
Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Arlo Technologies (NYSE:ARLO) 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 12.3% since the latest earnings results.
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, but overall, it was an ok quarter for the company with EPS inline with analysts’ estimates.
Arlo Technologies delivered the slowest revenue growth of the whole group. The stock is down 12.9% since reporting and currently trades at $10.39.
Is now the time to buy Arlo Technologies? Access our full analysis of the earnings results 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 scored the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 3.4% since reporting. It currently trades at $58.66.