Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Itron (NASDAQ: ITRI) and its peers.
Measurement and inspection instrument companies may enjoy more steady demand because products such as water meters are non-discretionary and mandated for replacement at predictable intervals. In the last decade, digitization and data collection have driven innovation in the space, leading to incremental sales. But like the broader industrials sector, measurement and inspection instrument companies are at the whim of economic cycles. Interest rates, for example, can greatly impact civil, commercial, and residential construction projects that drive demand.
The 5 inspection instruments stocks we track reported a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was in line.
Luckily, inspection instruments stocks have performed well with share prices up 22.8% on average since the latest earnings results.
Itron (NASDAQ: ITRI)
Founded by a small group of engineers who wanted to build a more efficient way to read utility meters, Itron (NASDAQ: ITRI) offers energy and water management products for the utility industry, municipalities, and industrial customers.
Itron reported revenues of $607.2 million, flat year on year. This print fell short of analysts’ expectations by 1.1%, but it was still a strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates.
"First quarter margin expansion and earnings growth were ahead of expectations due to favorable product mix and continued strong execution," said Tom Deitrich, Itron’s president and CEO.
Itron delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 12.9% since reporting and currently trades at $125.70.
Is now the time to buy Itron? Access our full analysis of the earnings results here, it’s free.
Best Q1: FARO (NASDAQ: FARO)
Launched by two PhD students in a garage, FARO (NASDAQ: FARO) provides 3D measurement and imaging systems for the manufacturing, construction, engineering, and public safety industries.
FARO reported revenues of $82.86 million, down 1.6% year on year, outperforming analysts’ expectations by 3.3%. The business had an exceptional quarter with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EPS estimates.
FARO pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 65.5% since reporting. It currently trades at $43.70.
Is now the time to buy FARO? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Keysight (NYSE: KEYS)
Spun off from Hewlett-Packard in 2014, Keysight (NYSE: KEYS) offers electronic measurement products for use in various sectors.
Keysight reported revenues of $1.31 billion, up 7.4% year on year, exceeding analysts’ expectations by 1.8%. It was a satisfactory quarter as it also posted a decent beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations.
As expected, the stock is down 1.5% since the results and currently trades at $160.14.
Read our full analysis of Keysight’s results here.
Badger Meter (NYSE: BMI)
The developer of the world’s first frost-proof water meter in 1905, Badger Meter (NYSE: BMI) provides water control and measure equipment to various industries.
Badger Meter reported revenues of $222.2 million, up 13.2% year on year. This print was in line with analysts’ expectations. It was an exceptional quarter as it also produced an impressive beat of analysts’ EBITDA estimates.
Badger Meter achieved the fastest revenue growth among its peers. The stock is up 31.4% since reporting and currently trades at $241.64.
Read our full, actionable report on Badger Meter here, it’s free.
Teledyne (NYSE: TDY)
Playing a role in mapping the ocean floor as we know it today, Teledyne (NYSE: TDY) offers digital imaging and instrumentation products for various industries.
Teledyne reported revenues of $1.45 billion, up 7.4% year on year. This result surpassed analysts’ expectations by 1.5%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates.
The stock is up 5.7% since reporting and currently trades at $487.01.
Read our full, actionable report on Teledyne here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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