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Inspection Instruments Stocks Q1 Recap: Benchmarking Keysight (NYSE:KEYS)


Radek Strnad /
2024/07/02 3:45 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 Keysight (NYSE:KEYS).

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 growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance 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 2.3% on average since the previous earnings results.

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, topping analysts' expectations by 1%. It was a weak quarter for the company, with a miss of analysts' backlog sales estimates.

Keysight Total Revenue

Keysight delivered the slowest revenue growth of the whole group. The stock is down 15.6% since the results and currently trades at $134.93.

Read our full report on Keysight 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 achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 20.7% since the results and currently trades at $184.77.

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.

Teledyne had the weakest performance against analyst estimates in the group. The stock is down 5.9% since the results and currently trades at $382.91.

Read our full analysis of Teledyne's results here.

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. It was a decent quarter for the company with revenue inline with expectations.

The stock is down 2.3% since the results and currently trades at $10.61.

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

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 16% since the results and currently trades at $15.9.

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

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