Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Inspection Instruments Stocks Q3 Recap: Benchmarking Keysight (NYSE:KEYS)

KEYS Cover Image

Let’s dig into the relative performance of Keysight (NYSE: KEYS) and its peers as we unravel the now-completed Q3 inspection instruments earnings season.

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 12.5% on average since the latest 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 $1.29 billion, down 1.8% year on year. This print exceeded analysts’ expectations by 2.3%. Overall, it was a very strong quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations.

Keysight Total Revenue

Interestingly, the stock is up 3.5% since reporting and currently trades at $157.51.

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

Best Q3: FARO (NASDAQ: FARO)

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 achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 33.8% since reporting. It currently trades at $25.16.

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

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 $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 25.4% since the results and currently trades at $17.62.

Read our full analysis of Mirion’s results here.

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 $1.44 billion, up 2.9% year on year. This number surpassed analysts’ expectations by 1.9%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ EBITDA estimates.

The stock is up 7.7% since reporting and currently trades at $477.

Read our full, actionable report on Teledyne 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 $615.5 million, up 9.8% year on year. This result beat analysts’ expectations by 3.2%. It was an exceptional quarter as it also produced an impressive beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is up 6.7% since reporting and currently trades at $110.82.

Read our full, actionable report on Itron 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 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 Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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