- Badger Meter reported net sales of $208.4 million for the third quarter, which represents a 12% increase from the previous year but missed the estimated $212 million.
- Third quarter earnings per share (EPS) were $1.08, surpassing the estimate of $1.03 and improving from 88 cents in the previous year.
- The company’s gross margin was reported at 40.2%, slightly exceeding the estimate of 40% and up from 39.1% the previous year.
- Operating earnings were $40.6 million, beating the estimate of $37.8 million.
- Selling, engineering, and administration expenses were $43.3 million, which was slightly below the forecasted $43.6 million.
- Badger Meter increased its annual dividend rate by 26% to $1.36 per share, marking the 32nd consecutive year of dividend growth.
- The company achieved a record cash flow with $45.1 million in net cash provided by operations, a 43% increase year-over-year.
- The company plans to focus on modest operating profit margin expansion through strategic sales mix and effective cost management.
- For the fourth quarter, a reduction in operating days is anticipated due to holiday-shortened activity at customer sites.
- Analysts’ ratings for Badger Meter include 3 buys and 4 holds, with no sell recommendations.
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Badger Meter on Smartkarma
Analyst coverage on Badger Meter by Baptista Research on Smartkarma presents a bullish outlook on the company. In their report titled “Badger Meter Inc.: Initiation Of Coverage – Dealing With Financial Performance Stability and Margin Pressure! – Major Drivers”, Baptista Research highlights Badger Meter Inc.’s strong second-quarter performance in 2024. The company exceeded expectations by reporting quarterly revenues of $217 million, showing a significant 23% year-over-year increase. This exceptional performance was driven by a robust market demand and efficient backlog conversion, slightly surpassing anticipated levels.
A look at Badger Meter Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Badger Meter, Inc. has received a mixed bag of Smartkarma Smart Scores, with high marks in Growth, Resilience, and Momentum, indicating a positive long-term outlook for the company. The company excels in its ability to grow, adapt to challenges, and maintain positive market momentum. With a focus on manufacturing and marketing flow measurement and control products for various applications, including water meters, wastewater meters, and industrial process meters, Badger Meter is well-positioned to capitalize on future opportunities in the market.
While Badger Meter scores lower in Value and Dividend, the strengths in Growth, Resilience, and Momentum suggest that the company is poised for long-term success. Investors may find value in Badger Meter‘s innovative products and strong market presence, as the company continues to navigate the dynamic landscape of flow measurement and control solutions. Overall, Badger Meter‘s focus on growth, resilience, and momentum bodes well for its future performance in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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