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 (BMI) Beats on Q4 Earnings, Falters on Revenues
Read MoreHide Full Article
Badger Meter, Inc. (BMI - Free Report) reported relatively healthy fourth-quarter 2018 results with year-over-year increase in revenues and earnings on the back of solid growth dynamics. The company expects to continue this growth momentum in 2019 with leading technology offerings and a customer-focused strategy.
Net Income
On a GAAP basis, net earnings for the fourth quarter were $11.2 million or 39 cents per share compared with $7.2 million or 25 cents per share in the year-ago quarter. The increase, despite higher cost of sales, was primarily due to higher revenues and lower provision for income tax.
Adjusted net earnings increased 60% year over year to 40 cents per share, and beat the Zacks Consensus Estimate by a couple of cents.
Badger Meter, Inc. Price, Consensus and EPS Surprise
For full-year 2018, GAAP earnings declined to $27.8 million or 95 cents per share from $34.6 million or $1.19 per share in 2017, owing to pension and postretirement costs along with higher operating costs. However, adjusted earnings for the full year were $44.9 million or $1.54 per share compared with $34.6 million or $1.19 per share in 2017.
Revenues
Quarterly net sales increased 8% year over year to $104.4 million due to high domestic municipal sales of flagship products and favorable product mix with higher-than-average sales growth of meters. However, the top line missed the Zacks Consensus Estimate of $105 million. For full-year 2018, net sales improved to $433.7 million from $402.4 million.
Other Quarter Details
Cost of sales rose from $57.6 million to $64.3 million. Gross profit came in at $40.2 million, up from $39 million in the year-earlier quarter for respective margins of 38.5% and 40.3%. Adjusted operating earnings were $15.3 million or 14.6% of sales, which improved 20 basis points year over year from 14.4%.
Liquidity
As of Dec 31, 2018, Badger Meter had a cash balance of $13.1 million and short-term debt of $18.1 million compared with respective tallies of $11.2 million and $44.6 million a year ago. Free cash flow for 2018 was approximately $52 million compared with $35 million in the prior year.
Moving Forward
Management remains optimistic about its prospects for 2019 supported by a number of reasons like a solid backlog, continued customer acceptance of its new products and the moderating of copper prices. The company continues to make progress in its various innovative technologies, including D-Flow ultrasonic technology. The company focuses on enhancing shareholders’ value through organic and inorganic investments supported by its strong balance sheet.
Badger Meter currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Allied Motion Technologies Inc. , sporting a Zacks Rank #1 (Strong Buy), and Nanometrics Incorporated and InterDigital, Inc. (IDCC - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allied Motion Technologies has a long-term earnings growth expectation of 10%. It delivered average positive earnings surprise of 41.2% in the trailing four quarters, beating estimates thrice.
Nanometrics Incorporated has a long-term earnings growth expectation of 12%. It delivered average positive earnings surprise of 20.5% in the trailing four quarters, beating estimates in each.
InterDigital has a long-term earnings growth expectation of 15%. It delivered average positive earnings surprise of 148.4% in the trailing four quarters, beating estimates in each.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Badger Meter (BMI) Beats on Q4 Earnings, Falters on Revenues
Badger Meter, Inc. (BMI - Free Report) reported relatively healthy fourth-quarter 2018 results with year-over-year increase in revenues and earnings on the back of solid growth dynamics. The company expects to continue this growth momentum in 2019 with leading technology offerings and a customer-focused strategy.
Net Income
On a GAAP basis, net earnings for the fourth quarter were $11.2 million or 39 cents per share compared with $7.2 million or 25 cents per share in the year-ago quarter. The increase, despite higher cost of sales, was primarily due to higher revenues and lower provision for income tax.
Adjusted net earnings increased 60% year over year to 40 cents per share, and beat the Zacks Consensus Estimate by a couple of cents.
Badger Meter, Inc. Price, Consensus and EPS Surprise
Badger Meter, Inc. Price, Consensus and EPS Surprise | Badger Meter, Inc. Quote
For full-year 2018, GAAP earnings declined to $27.8 million or 95 cents per share from $34.6 million or $1.19 per share in 2017, owing to pension and postretirement costs along with higher operating costs. However, adjusted earnings for the full year were $44.9 million or $1.54 per share compared with $34.6 million or $1.19 per share in 2017.
Revenues
Quarterly net sales increased 8% year over year to $104.4 million due to high domestic municipal sales of flagship products and favorable product mix with higher-than-average sales growth of meters. However, the top line missed the Zacks Consensus Estimate of $105 million. For full-year 2018, net sales improved to $433.7 million from $402.4 million.
Other Quarter Details
Cost of sales rose from $57.6 million to $64.3 million. Gross profit came in at $40.2 million, up from $39 million in the year-earlier quarter for respective margins of 38.5% and 40.3%. Adjusted operating earnings were $15.3 million or 14.6% of sales, which improved 20 basis points year over year from 14.4%.
Liquidity
As of Dec 31, 2018, Badger Meter had a cash balance of $13.1 million and short-term debt of $18.1 million compared with respective tallies of $11.2 million and $44.6 million a year ago. Free cash flow for 2018 was approximately $52 million compared with $35 million in the prior year.
Moving Forward
Management remains optimistic about its prospects for 2019 supported by a number of reasons like a solid backlog, continued customer acceptance of its new products and the moderating of copper prices. The company continues to make progress in its various innovative technologies, including D-Flow ultrasonic technology. The company focuses on enhancing shareholders’ value through organic and inorganic investments supported by its strong balance sheet.
Badger Meter currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Allied Motion Technologies Inc. , sporting a Zacks Rank #1 (Strong Buy), and Nanometrics Incorporated and InterDigital, Inc. (IDCC - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allied Motion Technologies has a long-term earnings growth expectation of 10%. It delivered average positive earnings surprise of 41.2% in the trailing four quarters, beating estimates thrice.
Nanometrics Incorporated has a long-term earnings growth expectation of 12%. It delivered average positive earnings surprise of 20.5% in the trailing four quarters, beating estimates in each.
InterDigital has a long-term earnings growth expectation of 15%. It delivered average positive earnings surprise of 148.4% in the trailing four quarters, beating estimates in each.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>