Badger Meter, Inc (BMI - Free Report) reported earnings of 61 cents per share for third-quarter 2022, beating the Zacks Consensus Estimate of 60 cents. Also, the bottom line compared favorably with the year-ago quarter’s earnings of 54 cents.
Net earnings in the reported quarter were $17.9 million compared with $15.9 million in the year-ago quarter. The year-over-year improvement can be primarily attributed to higher revenues.
Quarterly net sales increased to $148 million from $128.7 million in the year-ago quarter. The 15% (up 17% excluding the unfavorable impact of the stronger US dollar) rise was primarily driven by robust customer demand. Also, the top line beat the consensus mark of $141.1 million.
Following the announcement, shares of the company jumped 3.5% on Oct 19, 2022 and closed the session at $100.36. In the past year, shares have lost 3.5% compared with the Zacks sub-industry’s decline of 23.6%
Segmental Performance
In the quarter under review, utility water sales rose 17%, owing to strong demand momentum. Strength in E-Series, ultrasonic meters, ORION Cellular endpoint sales, and higher BEACON Software-as-a-Service revenues acted as major tailwinds.
Flow instrumentation sales increased 5% year over year, driven by continued strong order trends across the majority of end-market applications globally. However, it was partly offset by supply chain woes, which impacted manufacturing output.
Other Details
During the September-end quarter, gross profit was $57.5 million, up 12.4% year over year. The gross margin was 38.9%, down from the 39.8% recorded in the prior-year quarter. This downside in the margin was primarily due to rising electronic and other components, logistics and other costs. Operating earnings were $23.9 million or 16.1% of sales compared with $19.4 million and 15.1% in the year-earlier quarter.
Selling, engineering, and administration (SEA) expenses were $33.7 million or 22.7% of sales compared with $31.7 million or 24.7% in the prior-year quarter. The increase in expenses was mainly due to higher personnel costs, research & development, and travel expenses. However, effective spending controls and higher sales mainly drove the year-over-year improvement in SEA expense leverage.
Cash Flow & Liquidity
During the third quarter of 2022, Badger Meter generated $23.8 million of net cash from operating activities compared with $15.4 million a year ago. As of Sep 30, 2022, the company had $114.8 million of cash and cash equivalents, and $101.9 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 & Stocks to Consider
Badger Meter currently has a Zacks Rank #4 (Sell)
Some better-ranked stocks from the broader technology space are Pure Storage (PSTG - Free Report) , Blackbaud (BLKB - Free Report) and Iridium Communications (IRDM - Free Report) . All stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Pure Storage’s 2022 earnings is pegged at $1.18 per share, up 24.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 35.5%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 171.8%. Shares of PSTG have gained 4.6% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2022 earnings is pegged at $2.55 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 3%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 8.5%. Shares of BLKB have lost 29.5% in the past year.
The Zacks Consensus Estimate for Iridium’s 2022 earnings is pegged at 12 cents per share, up 20% in the past 60 days.
IRDM’s earnings beat the Zacks Estimate in all the last four quarters, the average being 100%. Shares of IRDM have gained 15.2% in the past year.
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Free: See Our Top Stock And 4 Runners Up
Badger Meter, Inc (BMI - Free Report) reported earnings of 61 cents per share for third-quarter 2022, beating the Zacks Consensus Estimate of 60 cents. Also, the bottom line compared favorably with the year-ago quarter’s earnings of 54 cents.
Net earnings in the reported quarter were $17.9 million compared with $15.9 million in the year-ago quarter. The year-over-year improvement can be primarily attributed to higher revenues.
Quarterly net sales increased to $148 million from $128.7 million in the year-ago quarter. The 15% (up 17% excluding the unfavorable impact of the stronger US dollar) rise was primarily driven by robust customer demand. Also, the top line beat the consensus mark of $141.1 million.
Following the announcement, shares of the company jumped 3.5% on Oct 19, 2022 and closed the session at $100.36. In the past year, shares have lost 3.5% compared with the Zacks sub-industry’s decline of 23.6%
Segmental Performance
In the quarter under review, utility water sales rose 17%, owing to strong demand momentum. Strength in E-Series, ultrasonic meters, ORION Cellular endpoint sales, and higher BEACON Software-as-a-Service revenues acted as major tailwinds.
Flow instrumentation sales increased 5% year over year, driven by continued strong order trends across the majority of end-market applications globally. However, it was partly offset by supply chain woes, which impacted manufacturing output.
Other Details
During the September-end quarter, gross profit was $57.5 million, up 12.4% year over year. The gross margin was 38.9%, down from the 39.8% recorded in the prior-year quarter. This downside in the margin was primarily due to rising electronic and other components, logistics and other costs. Operating earnings were $23.9 million or 16.1% of sales compared with $19.4 million and 15.1% in the year-earlier quarter.
Selling, engineering, and administration (SEA) expenses were $33.7 million or 22.7% of sales compared with $31.7 million or 24.7% in the prior-year quarter. The increase in expenses was mainly due to higher personnel costs, research & development, and travel expenses. However, effective spending controls and higher sales mainly drove the year-over-year improvement in SEA expense leverage.
Cash Flow & Liquidity
During the third quarter of 2022, Badger Meter generated $23.8 million of net cash from operating activities compared with $15.4 million a year ago. As of Sep 30, 2022, the company had $114.8 million of cash and cash equivalents, and $101.9 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 & Stocks to Consider
Badger Meter currently has a Zacks Rank #4 (Sell)
Some better-ranked stocks from the broader technology space are Pure Storage (PSTG - Free Report) , Blackbaud (BLKB - Free Report) and Iridium Communications (IRDM - Free Report) . All stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Pure Storage’s 2022 earnings is pegged at $1.18 per share, up 24.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 35.5%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 171.8%. Shares of PSTG have gained 4.6% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2022 earnings is pegged at $2.55 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 3%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 8.5%. Shares of BLKB have lost 29.5% in the past year.
The Zacks Consensus Estimate for Iridium’s 2022 earnings is pegged at 12 cents per share, up 20% in the past 60 days.
IRDM’s earnings beat the Zacks Estimate in all the last four quarters, the average being 100%. Shares of IRDM have gained 15.2% in the past year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s an American AI company that’s riding low right now, but it has rounded up clients like BMW, GE, Dell Computer, and Bosch. It has prospects for not just doubling but quadrupling in the year to come. Of course, all our picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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