Back to top

Image: Bigstock

Badger Meter (BMI) Q4 Earnings Match Estimates, Revenues Up Y/Y

Read MoreHide Full Article

Badger Meter, Inc (BMI - Free Report) reported earnings of 60 cents per share for fourth-quarter 2022, matching the Zacks Consensus Estimate. Also, the bottom line compared favorably with the year-ago quarter’s earnings of 59 cents.

For 2022, the company’s earnings per share improved 9% to $2.26.

Net earnings in the reported quarter were $17.5 million compared with $17.3 million in the year-ago quarter. The year-over-year improvement can be primarily attributed to higher revenues.

Badger Meter, Inc. Price, Consensus and EPS Surprise

Badger Meter, Inc. Price, Consensus and EPS Surprise

Badger Meter, Inc. price-consensus-eps-surprise-chart | Badger Meter, Inc. Quote

Quarterly net sales increased to $147.3 million from $135.7 million from the year-ago quarter. The 8.5% (up 10% excluding the unfavorable impact of the stronger US dollar) rise was primarily driven by robust demand for smart water solutions. Also, the top line beat the consensus mark of $144.6 million.

For 2022, the company recorded sales of $565.6 million, rising 11.9% compared with the prior year. However, excluding the unfavorable impact of the stronger U.S. dollar, sales increased 13%.

In the past year, shares have gained 10.6% against the Zacks sub-industry’s decline of 4.3%.

Zacks Investment Research
Image Source: Zacks Investment Research

Segmental Performance

In the quarter under review, utility water sales rose 9%, owing to strong demand momentum. Strength in E-Series, ultrasonic meters, cellular AMI solution, ORION Cellular endpoint sales and higher BEACON Software-as-a-Service revenues acted as major tailwinds.

Flow instrumentation sales increased 8% year over year, driven by continued strong order trends across most of the water-focused end market and modestly easing supply-chain woes. However, it was partly offset by unfavorable foreign currency movement.

Other Details

During the December quarter, gross profit was $57 million, up 3.9% year over year. The gross margin was 38.7%, down from the 40.4% recorded in the prior-year quarter. This downside in the margin was primarily due to inflationary pressures and intermittent supply-chain woes. Operating earnings were $22.5 million or 15.3% of sales compared with $22.9 million and 16.8% of sales in the year-earlier quarter.

Selling, engineering and administration expenses were $34.5 million or 23.4% of sales compared with $32 million or 23.6% of sales in the prior-year quarter. The increase in expenses was mainly due to higher personnel and incentive compensation costs, research & development and travel expenses.

Cash Flow & Liquidity

During the fourth quarter of 2022, Badger Meter generated $29.7 million of net cash from operating activities compared with $27.1 million a year ago. As of Dec 31, 2022, the company had $138.1 million of cash and cash equivalents and $110.3 million of total current liabilities compared with the respective figures of $87.2 million and $82.1 million as of Dec 31, 2021.

Zacks Rank & Other Stocks to Consider

Badger Meter currently has a Zacks Rank #2 (Buy)

Some other top-ranked stocks from the broader technology space are Arista Networks (ANET - Free Report) , Jabil (JBL - Free Report) and Calix (CALX - Free Report) . Jabil and Calix currently sport a Zacks Rank #1 (Strong Buy), whereas Arista Networks holds a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks.

The Zacks Consensus Estimate for Arista Networks 2022 earnings is pegged at $4.38 per share, rising 0.2 in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.

Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have increased 1.4% in the past year.

The Zacks Consensus Estimate for Jabil’s 2023 earnings is pegged at $8.37 per share, rising 2.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.

Jabil’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 8.8%. Shares of JBL have increased 25.6% in the past year.

The Zacks Consensus Estimate for Calix’s 2022 earnings is pegged at $1.28 per share, rising 1.5% in the past 60 days.

Calix’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 22.2%. Shares of CALX have soared 1.7% in the past year.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Badger Meter, Inc. (BMI) - free report >>

Jabil, Inc. (JBL) - free report >>

Calix, Inc (CALX) - free report >>

Arista Networks, Inc. (ANET) - free report >>

Published in