Looking back on inspection instruments stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Mirion (NYSE:MIR) 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 7 inspection instruments stocks we track reported a decent Q2. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 1.5% below.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts. Luckily, inspection instruments stocks have performed well with share prices up 16.6% on average since the latest earnings results.
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. This print fell short of analysts’ expectations by 1.7%. Overall, it was a weak quarter for the company with some shareholders expecting a better outcome.
“Our second quarter results were in-line with our expectations,” stated Thomas Logan, Mirion’s Chief Executive Officer.
Interestingly, the stock is up 5.2% since reporting and currently trades at $10.84.
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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. The market seems happy with the results as the stock is up 6.6% since reporting. It currently trades at $206.94.
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 $82.09 million, down 6.9% year on year, falling short of analysts’ expectations by 1.9%. 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 in the group. Interestingly, the stock is up 22.4% since the results and currently trades at $17.66.
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 $609.1 million, up 12.6% year on year, surpassing analysts’ expectations by 1.6%. Overall, it was a very strong quarter for the company with optimistic earnings guidance for the full year.
Itron had the weakest full-year guidance update among its peers. The stock is down 1.2% since reporting and currently trades at $102.22.
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 $1.22 billion, down 11.9% year on year, surpassing analysts’ expectations by 1.9%. Revenue aside, it was a very strong quarter for the company with a solid beat of analysts’ earnings estimates.
Keysight had the slowest revenue growth among its peers. The stock is up 10.7% since reporting and currently trades at $153.42.
This content was originally published on Stock Story
