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Q1 Earnings Outperformers: Itron (NASDAQ:ITRI) And The Rest Of The Inspection Instruments Stocks


Max Juang /
2024/07/10 4:51 am EDT

Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at Itron (NASDAQ:ITRI) 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 decent Q1; on average, revenues beat analyst consensus estimates by 2.4%. while next quarter's revenue guidance was 2.6% below consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the inspection instruments stocks have fared somewhat better than others, they collectively declined, with share prices falling 1.1% on average since the previous earnings results.

Itron (NASDAQ:ITRI)

Founded by a small group of engineers who wanted to build a more efficient way to read utility meters, Itron (NASDAQGS:ITRI) offers energy and water management products for the utility industry, municipalities, and industrial customers.

Itron reported revenues of $603.4 million, up 22% year on year, exceeding analysts' expectations by 4.2%. Overall, it was a very strong quarter for the company with an impressive beat of analysts' earnings estimates.

“Itron’s first quarter results reflect strong operational execution within constructive market conditions,” said Tom Deitrich, Itron’s president and CEO.

Itron Total Revenue

The stock is up 7.3% since reporting and currently trades at $98.26.

Is now the time to buy Itron? Access our full analysis of the earnings results here, it's free.

Best Q1: 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 $196.3 million, up 23.4% year on year, outperforming analysts' expectations by 7.7%. It was a stunning quarter for the company with an impressive beat of analysts' earnings estimates.

Badger Meter Total Revenue

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 19.5% since reporting. It currently trades at $183.

Is now the time to buy Badger Meter? Access our full analysis of the earnings results here, it's free.

Weakest Q1: 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 $1.35 billion, down 2.4% year on year, falling short of analysts' expectations by 3.1%. It was a weak quarter for the company with a miss of analysts' organic revenue estimates and underwhelming earnings guidance for the full year.

Teledyne had the weakest performance against analyst estimates in the group. As expected, the stock is down 6.2% since the results and currently trades at $381.69.

Read our full analysis of Teledyne'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 $1.22 billion, down 12.5% year on year, surpassing analysts' expectations by 1%. Looking more broadly, it was a weaker quarter for the company with a miss of analysts' backlog sales estimates.

Keysight had the slowest revenue growth among its peers. The stock is down 14.8% since reporting and currently trades at $136.22.

Read our full, actionable report on Keysight here, it's free.

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 $192.6 million, up 5.8% year on year, in line with analysts' expectations. Looking more broadly, it was a decent quarter for the company, with revenue exceeding analysts' estimates by a narrow margin.

The stock is flat since reporting and currently trades at $10.83.

Read our full, actionable report on Mirion here, it's free.

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