Let’s dig into the relative performance of Iteris (NASDAQ:ITI) and its peers as we unravel the now-completed Q2 inspection instruments earnings season.
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 decent Q2. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 2.2% below.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation. Luckily, inspection instruments stocks have performed well with share prices up 10.9% on average since the latest earnings results.
Iteris (NASDAQ:ITI) Originally serving as a business incubator for technology companies, Iteris (NASDAQCM:ITI) provides applied informatics for transportation and agriculture.
Iteris reported revenues of $45.78 million, up 5.1% year on year. This print exceeded analysts’ expectations by 3.6%. Despite the top-line beat, it was still a mixed quarter for the company with full-year revenue guidance beating analysts’ expectations but a miss of analysts’ earnings estimates.
“We are pleased to report another quarter of solid organic revenue growth year-over-year, especially given the challenging prior year comparison,” said Joe Bergera, president and CEO of Iteris.
Iteris pulled off the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 63.1% since reporting and currently trades at $6.98.
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Best Q2: 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 $216.7 million, up 23.2% year on year, outperforming analysts’ expectations by 6.5%. It was a stunning quarter for the company with a solid beat of analysts’ earnings estimates.
Badger Meter delivered the biggest analyst estimates beat and fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $194.54.
Weakest Q2: 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 $207.1 million, up 5% year on year, falling short of analysts’ expectations by 1.7%. It was a weak quarter for the company with some shareholders hoping for a better result.
Interestingly, the stock is up 1.5% since the results and currently trades at $10.45.
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 $1.37 billion, down 3.6% year on year, surpassing analysts’ expectations by 1.1%. Zooming out, it was a good quarter for the company with a decent beat of analysts’ organic revenue estimates but underwhelming earnings guidance for the full year.
The stock is up 2.1% since reporting and currently trades at $410.86.
FARO (NASDAQ:FARO) Launched by two PhD students in a garage, FARO (NASDAQGS:FARO) provides 3D measurement and imaging systems for the manufacturing, construction, engineering, and public safety industries.
FARO reported revenues of $82.09 million, down 6.9% year on year, falling short of analysts’ expectations by 1.9%. Taking a step back, it was a weaker quarter for the company with revenue guidance for next quarter missing analysts’ expectations.
FARO had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 5.2% since reporting and currently trades at $15.18.
This content was originally published on Stock Story
