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Badger Meter (NYSE:BMI) Q1 Earnings: Leading The Inspection Instruments Pack


Jabin Bastian /
2024/07/03 5:15 am EDT

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how inspection instruments stocks fared in Q1, starting with Badger Meter (NYSE:BMI).

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 mixed Q1; on average, revenues beat analyst consensus estimates by 2.4%. while next quarter's revenue guidance was 2.6% below consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some of the inspection instruments stocks have fared somewhat better than others, they collectively declined, with share prices falling 1.2% on average since the previous earnings results.

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, topping analysts' expectations by 7.7%. It was a stunning quarter for the company, with an impressive beat of analysts' earnings estimates.

“The continued strength in both customer demand and operating execution drove exceptional performance in our first quarter, with record quarterly revenue, operating profit and EPS results. These record results are reflective of ongoing favorable industry fundamentals, driving robust customer demand for our innovative smart water solutions. Our operating profit margins benefited from higher volumes, solid operating execution and selling, engineering and administration (SEA) expense leverage. Additionally, we completed the acquisition of the Telog/Unity network monitoring offering at the beginning of the year with seamless integration of their hardware and software teams well underway,” said Kenneth C. Bockhorst, Chairman, President and Chief Executive Officer.

Badger Meter Total Revenue

Badger Meter pulled off the biggest analyst estimates beat and fastest revenue growth of the whole group. The stock is up 22% since the results and currently trades at $186.85.

Read why we think that Badger Meter is one of the best inspection instruments stocks, our full report is free.

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, outperforming analysts' expectations by 4.2%. It was a very good quarter for the company, with an impressive beat of analysts' earnings estimates.

Itron Total Revenue

The stock is up 9.9% since the results and currently trades at $100.6.

Is now the time to buy Itron? 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.

Teledyne had the weakest performance against analyst estimates in the group. The stock is down 5.5% since the results and currently trades at $384.56.

Read our full analysis of Teledyne's results here.

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 $84.24 million, down 0.9% year on year, surpassing analysts' expectations by 3.9%. It was a mixed quarter for the company, with revenue guidance for next quarter missing analysts' expectations.

The stock is down 17.3% since the results and currently trades at $15.64.

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

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%. It was a weak 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 14.7% since the results and currently trades at $136.45.

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

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