A Look Back at Inspection Instruments Stocks' Q1 Earnings: Teledyne (NYSE:TDY) Vs The Rest Of The Pack

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Teledyne (NYSE:TDY) and the best and worst performers in the inspection instruments industry.

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 26.6% on average since the latest earnings results.

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 print exceeded analysts’ expectations by 1.5%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

Interestingly, the stock is up 15.1% since reporting and currently trades at $530.50.

Is now the time to buy Teledyne? 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 achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 66.3% since reporting. It currently trades at $43.89.

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.

The stock is flat since the results and currently trades at $161.96.

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. Overall, it was an exceptional quarter as it also logged an impressive beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

Badger Meter scored the fastest revenue growth among its peers. The stock is up 29.2% since reporting and currently trades at $237.68.

Read our full, actionable report on Badger Meter here, it’s free.

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 result lagged analysts' expectations by 1.1%. More broadly, it was actually a strong quarter as it logged an impressive beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.

Itron had the weakest performance against analyst estimates among its peers. The stock is up 22.6% since reporting and currently trades at $136.50.

Read our full, actionable report on Itron here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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