As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at inspection instruments stocks, starting with Teledyne (NYSE: TDY).

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 satisfactory Q2. 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 9.6% since the latest earnings results.

Best Q2: 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 $1.51 billion, up 10.2% year on year. This print exceeded analysts’ expectations by 2.7%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EBITDA estimates.

“Today we reported record quarterly sales, having achieved the greatest total and organic sales growth in three years,” said Robert Mehrabian, Executive Chairman. “Furthermore, sales grew organically in every segment, and orders exceeded sales for the seventh consecutive quarter. Both GAAP and non-GAAP earnings per share increased at double-digit rates. Given our strong second quarter results, we are raising the low end of our full year non-GAAP earnings outlook. However, we are exercising some caution regarding the third quarter, as our second quarter likely benefited from a degree of accelerated demand given uncertain global trade policies. While we are pursuing a number of acquisitions, we will continue to consider stock repurchases when we believe Teledyne is the best value acquisition available.”

Teledyne pulled off the biggest analyst estimates beat of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 2% since reporting and currently trades at $544.66.

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

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 $606.8 million, flat year on year, in line with analysts’ expectations. The business had a strong quarter with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 12.9% since reporting. It currently trades at $120.56.

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

Weakest Q2: 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 $238.1 million, up 9.9% year on year, exceeding analysts’ expectations by 0.6%. Still, it was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.

As expected, the stock is down 26.9% since the results and currently trades at $179.44.

Read our full analysis of Badger Meter’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 $1.35 billion, up 11.1% year on year. This result beat analysts’ expectations by 2.7%. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EBITDA estimates.

Keysight pulled off the fastest revenue growth among its peers. The stock is up 3.2% since reporting and currently trades at $169.10.

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

Market Update

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 thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), 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 potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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