We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Badger Meter, Inc (BMI - Free Report) reported earnings per share (EPS) of $1.12 for second-quarter 2024, beating the Zacks Consensus Estimate by 14.3%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 76 cents.
Quarterly net sales were $216.7 million, up 23% from $175.9 million in the year-ago quarter. The uptick was due to healthy customer demand for its smart water solutions, smooth operational execution and accretive customer backlog conversion. Also, the top line surpassed the consensus mark by 7.86%.
During the quarter, the company launched the BlueEdge platform to streamline its comprehensive suite of scalable water solutions. This platform combines water technology, software and services to enhance customer experience with efficient water management. The state-of-the-art solution has been instrumental in expanding the business pipeline and driving growth.
In the past year, shares of BMI have gained 16.5% compared with the sub-industry’s growth of 15.2%.
Image Source: Zacks Investment Research
Segmental Performance
In the quarter under review, utility water sales rose 26% due to strong demand momentum, particularly with the healthy adoption rate of its innovative cellular AMI solution. Strength in E-Series Ultrasonic meters, ORION Cellular endpoints and related BEACON Software-as-a-Service revenue acted as major growth drivers.
Flow instrumentation revenues went up 5% year over year, driven by strong performance across water-focused end markets, including wastewater worldwide.
Badger Meter, Inc. Price, Consensus and EPS Surprise
In the second quarter, gross profit was $85.4 million, up 23.1% year over year. The expansion resulted from robust volumes and positive sales mix strategies amid inflationary cost pressures. The gross margin was 39.4%, down 10 basis points year over year.
Operating earnings were $41.6 million or 19.2% of sales compared with $29.5 million or 16.8% of sales in the year-ago quarter.
Selling, engineering and administration expenses were $43.9 million or 20.2% of sales compared with $39.9 million or 22.7% of sales in the prior-year quarter. An increase in personal-related expenses such as higher headcount, salaries, sales commissions and R&D resulted in the rise.
Cash Flow & Liquidity
In the second quarter of 2024, Badger Meter generated $36.4 million of net cash from operating activities compared with $22.8 million a year ago.
As of Jun 30, 2024, the company had $226.2 million of cash and cash equivalents and $138 million of total current liabilities compared with the respective figures of $199.3 million and $135 million as of Mar 31, 2024.
Zacks Rank
Badger Meter currently has a Zacks Rank #2 (Buy).
Other Stocks to Consider
NVIDIA Corporation (NVDA - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present, delivered a trailing four-quarter earnings surprise of 18.43%, on average. In the last reported quarter, it delivered an earnings surprise of 11.48%. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.
Motorola Solutions Inc. (MSI - Free Report) provides services and solutions to government segments and public safety programs, along with large enterprises and wireless infrastructure services. Motorola carries a Zacks Rank #2 at present.
It delivered a trailing four-quarter average earnings surprise of 7.54% and has a long-term growth expectation of 9.47%. In the last reported quarter, Motorola delivered an earnings surprise of 11.51%.
Silicon Motion Technology Corporation (SIMO - Free Report) , carrying a Zacks Rank #2 at present, delivered a trailing four-quarter average earnings surprise of 4.72%.
SIMO is a leading developer of microcontroller ICs for NAND flash storage devices. The semiconductor company also designs, develops and markets high-performance, low-power semiconductor solutions for original equipment manufacturers and other customers.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Badger Meter's (BMI) Q2 Earnings & Revenues Beat, Rise Y/Y
Badger Meter, Inc (BMI - Free Report) reported earnings per share (EPS) of $1.12 for second-quarter 2024, beating the Zacks Consensus Estimate by 14.3%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 76 cents.
Quarterly net sales were $216.7 million, up 23% from $175.9 million in the year-ago quarter. The uptick was due to healthy customer demand for its smart water solutions, smooth operational execution and accretive customer backlog conversion. Also, the top line surpassed the consensus mark by 7.86%.
During the quarter, the company launched the BlueEdge platform to streamline its comprehensive suite of scalable water solutions. This platform combines water technology, software and services to enhance customer experience with efficient water management. The state-of-the-art solution has been instrumental in expanding the business pipeline and driving growth.
In the past year, shares of BMI have gained 16.5% compared with the sub-industry’s growth of 15.2%.
Image Source: Zacks Investment Research
Segmental Performance
In the quarter under review, utility water sales rose 26% due to strong demand momentum, particularly with the healthy adoption rate of its innovative cellular AMI solution. Strength in E-Series Ultrasonic meters, ORION Cellular endpoints and related BEACON Software-as-a-Service revenue acted as major growth drivers.
Flow instrumentation revenues went up 5% year over year, driven by strong performance across water-focused end markets, including wastewater worldwide.
Badger Meter, Inc. Price, Consensus and EPS Surprise
Badger Meter, Inc. price-consensus-eps-surprise-chart | Badger Meter, Inc. Quote
Other Details
In the second quarter, gross profit was $85.4 million, up 23.1% year over year. The expansion resulted from robust volumes and positive sales mix strategies amid inflationary cost pressures. The gross margin was 39.4%, down 10 basis points year over year.
Operating earnings were $41.6 million or 19.2% of sales compared with $29.5 million or 16.8% of sales in the year-ago quarter.
Selling, engineering and administration expenses were $43.9 million or 20.2% of sales compared with $39.9 million or 22.7% of sales in the prior-year quarter. An increase in personal-related expenses such as higher headcount, salaries, sales commissions and R&D resulted in the rise.
Cash Flow & Liquidity
In the second quarter of 2024, Badger Meter generated $36.4 million of net cash from operating activities compared with $22.8 million a year ago.
As of Jun 30, 2024, the company had $226.2 million of cash and cash equivalents and $138 million of total current liabilities compared with the respective figures of $199.3 million and $135 million as of Mar 31, 2024.
Zacks Rank
Badger Meter currently has a Zacks Rank #2 (Buy).
Other Stocks to Consider
NVIDIA Corporation (NVDA - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present, delivered a trailing four-quarter earnings surprise of 18.43%, on average. In the last reported quarter, it delivered an earnings surprise of 11.48%. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.
Motorola Solutions Inc. (MSI - Free Report) provides services and solutions to government segments and public safety programs, along with large enterprises and wireless infrastructure services. Motorola carries a Zacks Rank #2 at present.
It delivered a trailing four-quarter average earnings surprise of 7.54% and has a long-term growth expectation of 9.47%. In the last reported quarter, Motorola delivered an earnings surprise of 11.51%.
Silicon Motion Technology Corporation (SIMO - Free Report) , carrying a Zacks Rank #2 at present, delivered a trailing four-quarter average earnings surprise of 4.72%.
SIMO is a leading developer of microcontroller ICs for NAND flash storage devices. The semiconductor company also designs, develops and markets high-performance, low-power semiconductor solutions for original equipment manufacturers and other customers.