As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the inspection instruments industry, including Teledyne (NYSE: TDY) 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 4 inspection instruments stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7% 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 $1.54 billion, up 6.7% year on year. This print exceeded analysts’ expectations by 0.8%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates.

“This morning, we were pleased to announce record quarterly sales, non-GAAP earnings per share and free cash flow,” said Robert Mehrabian, Executive Chairman.

Unsurprisingly, the stock is down 9.4% since reporting and currently trades at $519.54.

Is now the time to buy Teledyne? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: 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 $1.42 billion, up 10.3% year on year, outperforming analysts’ expectations by 2.5%. The business had an exceptional quarter with an impressive beat of analysts’ backlog estimates and EPS guidance for next quarter exceeding analysts’ expectations.

Keysight scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 14.6% since reporting. It currently trades at $203.61.

Is now the time to buy Keysight? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: 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 $581.6 million, down 5.5% year on year, exceeding analysts’ expectations by 0.6%. It may have had the worst quarter among its peers, but its results were still good as it also locked in EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ adjusted operating income estimates.

Itron delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 30.9% since the results and currently trades at $95.55.

Read our full analysis of Itron’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 $235.7 million, up 13.1% year on year. This print topped analysts’ expectations by 1.8%. It was an exceptional quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

Badger Meter pulled off the fastest revenue growth among its peers. The stock is down 2.3% since reporting and currently trades at $183.14.

Read our full, actionable report on Badger Meter here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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