Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Badger Meter (NYSE:BMI) 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 6 inspection instruments stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was 11.2% above.
Luckily, inspection instruments stocks have performed well with share prices up 17% on average since the latest earnings results.
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 $208.4 million, up 11.9% year on year. This print fell short of analysts’ expectations by 1.8%. Overall, it was a mixed quarter for the company with an impressive beat of analysts’ adjusted operating income estimates but a miss of analysts’ EPS estimates.
“We were pleased with our third quarter financial performance delivering strong sales growth, record operating profit margins and robust cash flow generation. Sales in the quarter continued to benefit from solid demand for our tailorable water management solutions. Notably, we achieved record operating profit margins of 19.5%, the result of favorable sales mix, price/cost management, strong operating execution and continued selling, engineering and administration (SEA) expense leverage,” said Kenneth C. Bockhorst, Chairman, President and Chief Executive Officer.
Badger Meter pulled off the fastest revenue growth but had the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is up 2.1% since reporting and currently trades at $224.18.
Is now the time to buy Badger Meter? Access our full analysis of the earnings results here, it’s free.
Best Q3: 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 $82.56 million, down 4.9% year on year, outperforming analysts’ expectations by 4.5%. The business had an exceptional quarter with EPS guidance for next quarter exceeding analysts’ expectations.
FARO pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 38% since reporting. It currently trades at $25.96.
Is now the time to buy FARO? Access our full analysis of the earnings results here, it’s free.
Slowest Q3: Mirion (NYSE:MIR)
With its monitoring devices installed on spacecraft, Mirion (NYSE:MIR) offers radiation technology to government agencies, healthcare providers, and industrial companies.
Mirion reported revenues of $206.8 million, up 8.2% year on year, exceeding analysts’ expectations by 1.5%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Interestingly, the stock is up 31.4% since the results and currently trades at $18.46.
Read our full analysis of Mirion’s results here.
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 $1.29 billion, down 1.8% year on year. This result surpassed analysts’ expectations by 2.3%. Overall, it was a very strong quarter as it also logged EPS and revenue guidance for next quarter exceeding analysts’ expectations.
The stock is up 11.4% since reporting and currently trades at $169.63.
Read our full, actionable report on Keysight 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 $1.44 billion, up 2.9% year on year. This number topped analysts’ expectations by 1.9%. It was a very strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates.
The stock is up 7.6% since reporting and currently trades at $476.72.
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 has 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.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
