Q4 Earnings Outperformers: CompoSecure (NASDAQ:CMPO) And The Rest Of The Hardware & Infrastructure Stocks

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 CompoSecure (NASDAQ:CMPO) and the rest of the hardware & infrastructure stocks fared in Q4.

The Hardware & Infrastructure sector will be buoyed by demand related to AI adoption, cloud computing expansion, and the need for more efficient data storage and processing solutions. Companies with tech offerings such as servers, switches, and storage solutions are well-positioned in our new hybrid working and IT world. On the other hand, headwinds include ongoing supply chain disruptions, rising component costs, and intensifying competition from cloud-native and hyperscale providers reducing reliance on traditional hardware. Additionally, regulatory scrutiny over data sovereignty, cybersecurity standards, and environmental sustainability in hardware manufacturing could increase compliance costs.

The 10 hardware & infrastructure stocks we track reported a slower Q4. As a group, revenues beat analysts’ consensus estimates by 1.1% 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 19.6% since the latest earnings results.

Weakest Q4: CompoSecure (NASDAQ:CMPO)

Pioneer of the luxury metal credit card that's in the wallets of affluent consumers worldwide, CompoSecure (NASDAQ:CMPO) designs and manufactures premium metal payment cards and secure authentication solutions for financial institutions and digital asset storage.

CompoSecure reported revenues of $100.9 million, flat year on year. This print fell short of analysts’ expectations by 1.6%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EPS estimates.

The stock is down 16.7% since reporting and currently trades at $10.

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

Best Q4: Pure Storage (NYSE:PSTG)

Founded in 2009 as a pioneer in enterprise all-flash storage technology, Pure Storage (NYSE:PSTG) provides all-flash data storage hardware and software that helps organizations manage their data more efficiently across on-premises and cloud environments.

Pure Storage reported revenues of $879.8 million, up 11.4% year on year, outperforming analysts’ expectations by 1.2%. The business had a satisfactory quarter with a solid beat of analysts’ EPS estimates but billings in line with analysts’ estimates.

Pure Storage pulled off the highest full-year guidance raise among its peers. The stock is down 27.3% since reporting. It currently trades at $45.40.

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

Diebold Nixdorf (NYSE:DBD)

With roots dating back to 1859 and a presence in over 100 countries, Diebold Nixdorf (NYSE:DBD) provides automated self-service technology, software, and services that help banks and retailers digitize their customer transactions.

Diebold Nixdorf reported revenues of $988.9 million, down 4.6% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates.

As expected, the stock is down 1.8% since the results and currently trades at $43.15.

Read our full analysis of Diebold Nixdorf’s results here.

IonQ (NYSE:IONQ)

Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE:IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.

IonQ reported revenues of $11.71 million, up 91.8% year on year. This number surpassed analysts’ expectations by 15.9%. However, it was a slower quarter as it logged a significant miss of analysts’ EPS estimates.

IonQ delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 3.3% since reporting and currently trades at $28.95.

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

Xerox (NASDAQ:XRX)

Pioneering the modern office copier and inventing technologies like Ethernet and the laser printer, Xerox (NASDAQ:XRX) provides document management systems, printing technology, and workplace solutions to businesses of all sizes across the globe.

Xerox reported revenues of $1.61 billion, down 8.6% year on year. This result topped analysts’ expectations by 2.9%. Aside from that, it was a slower quarter as it produced a significant miss of analysts’ EPS estimates.

Xerox had the slowest revenue growth among its peers. The stock is down 57.1% since reporting and currently trades at $4.17.

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

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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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