As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the inspection instruments industry, including 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 5 inspection instruments stocks we track reported a very strong Q4. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 6.4% 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 $205.2 million, up 12.5% year on year. This print exceeded analysts’ expectations by 2.3%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ EPS estimates.
Kenneth C. Bockhorst, Chairman, President and Chief Executive Officer, stated, “We finished 2024 with yet another quarter of excellent results, including solid performance across a variety of operating metrics with continued strong sales growth, expanding operating profit margins, robust EPS growth and record cash flow from operations. We utilized our strong balance sheet and cash flows to expand on the breadth of our BlueEdge suite of solutions, adding real-time monitoring of water collection systems with the acquisition of SmartCover® Systems (SmartCover) which we announced today. Lastly, I’m grateful for the hard work and commitment of the entire Badger Meter team in supporting our customers and delivering on our strategic growth goals and I want to welcome the employees of SmartCover to the Badger Meter team.”
Badger Meter scored the fastest revenue growth of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $208.22.
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Best Q4: 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 $93.54 million, down 5.4% year on year, outperforming analysts’ expectations by 2.3%. The business had an exceptional quarter with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 18.1% since reporting. It currently trades at $32.
Weakest Q4: 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 $1.30 billion, up 3.1% year on year, exceeding analysts’ expectations by 1.7%. It was a satisfactory quarter as it also posted a solid beat of analysts’ EBITDA estimates but a miss of analysts’ backlog estimates.
Keysight delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 6.8% since the results and currently trades at $160.44.
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 $612.9 million, up 6.2% year on year. This number topped analysts’ expectations by 1.7%. Overall, it was an exceptional quarter as it also put up EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EPS estimates.
The stock is up 16.3% since reporting and currently trades at $107.80.
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 $1.50 billion, up 5.4% year on year. This print beat analysts’ expectations by 3.6%. It was an exceptional quarter as it also produced an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
Teledyne achieved the biggest analyst estimates beat among its peers. The stock is up 4.3% since reporting and currently trades at $501.29.
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