Spotting Winners: Itron (NASDAQ:ITRI) And Inspection Instruments Stocks In Q3
As the Q3 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 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 strong Q3. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was 11.2% above.
Luckily, inspection instruments stocks have performed well with share prices up 11.6% on average since the latest 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 (NASDAQ:ITRI) offers energy and water management products for the utility industry, municipalities, and industrial customers.
Itron reported revenues of $615.5 million, up 9.8% year on year. This print exceeded analysts’ expectations by 3.2%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
"Operational momentum continued during the third quarter and solid execution by our team led to results ahead of expectations.” said Tom Deitrich, Itron’s president and CEO.
Itron Total Revenue
Interestingly, the stock is up 5.2% since reporting and currently trades at $109.27.
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 $82.56 million, down 4.9% year on year, outperforming analysts’ expectations by 4.5%. The business had an exceptional quarter with EPS guidance for next quarter exceeding analysts’ expectations.
FARO Total Revenue
FARO delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 34.8% since reporting. It currently trades at $25.36.
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 $206.8 million, up 8.2% year on year, exceeding analysts’ expectations by 1.5%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Interestingly, the stock is up 24.2% since the results and currently trades at $17.45.
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 $1.44 billion, up 2.9% year on year. This print beat analysts’ expectations by 1.9%. It was a very strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates.
The stock is up 3.8% since reporting and currently trades at $460.
Spun off from Hewlett-Packard in 2014, Keysight (NYSE:KEYS) offers electronic measurement products for use in various sectors.
Keysight reported revenues of $1.29 billion, down 1.8% year on year. This number topped analysts’ expectations by 2.3%. Overall, it was a very strong quarter as it also produced EPS and revenue guidance for next quarter exceeding analysts’ expectations.
The stock is up 5.5% since reporting and currently trades at $160.63.
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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