Badger Meter, Inc (BMI - Free Report) reported earnings per share (EPS) of 76 cents for second-quarter 2023, beating the Zacks Consensus Estimate by 13.4%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 57 cents.
Net earnings in the reported quarter were $22.5 million compared with $16.6 million in the year-ago quarter. The year-over-year improvement can be primarily attributed to higher revenues.
Quarterly net sales increased to $175.9 million from $137.8 million in the year-ago quarter. The 28% rise was primarily driven by robust demand for smart water solutions and improving operating environment. Also, the top line beat the consensus mark by 10.8%.
Segmental Performance
In the quarter under review, utility water sales rose 32% due to strong demand momentum. Higher E-Series volume, cellular AMI solution, ORION Cellular endpoint sales and higher BEACON Software-as-a-Service revenues acted as major tailwinds.
Flow instrumentation sales increased 6% year over year, driven by continued strong order trends across most of the water-focused end market and modestly easing supply-chain woes.
Other Details
In the second quarter, gross profit was $69.4 million, up 26.7% year over year. Favorable sales mix (higher SaaS revenues), efficiencies achieved across production and stabilizing inflationary pressures resulted in this upside. The gross margin was 39.5%, down 20 basis points from the prior-year quarter. Operating earnings were $29.5 million or 16.8% of sales compared with $22.1 million or 16% of sales in the year-earlier quarter.
Selling, engineering and administration expenses were $39.9 million or 22.7% of sales compared with $32.7 million or 23.7% of sales in the prior-year quarter. The increase in expenses was mainly due to higher personnel costs, travel expenses and the acquisition of Syrinix.
Cash Flow & Liquidity
In the second quarter of 2023, Badger Meter generated $22.8 million of net cash from operating activities compared with $19.7 million a year ago. As of Jun 30, 2023, the company had $141.8 million of cash and cash equivalents and $118.9 million of total current liabilities compared with the respective figures of $128.4 million and $115.8 million as of Mar 31, 2023.
Zacks Rank
Badger Meter currently has a Zacks Rank #2 (Buy)
Other Stocks to Consider
Some other top-ranked stocks in the broader technology space are InterDigital (IDCC - Free Report) , Blackbaud (BLKB - Free Report) and Woodward (WWD - Free Report) . InterDigital sports a Zacks Rank #1 (Strong Buy), while Blackbaud and Woodward carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for InterDigital’s 2023 EPS has increased 0.1% in the past 60 days to $8.08. The company’s long-term earnings growth rate is 13.9%.
InterDigital’s earnings beat estimates in all the trailing four quarters, delivering an average surprise of 170.9%. Shares of IDCC have rallied 52% in the past year.
The consensus estimate for Blackbaud’s 2023 EPS is pegged at $3.75, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 21.9%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average beat being 10.4%. Shares of BLKB have soared 35.1% in the past year.
The Zacks Consensus Estimate for Woodward’s fiscal 2023 EPS has increased 0.3% in the past 60 days to $3.59.
WWD’s long-term earnings growth rate is 13.5%. Shares of WWD have gained 12% in the past year.
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Badger Meter, Inc (BMI - Free Report) reported earnings per share (EPS) of 76 cents for second-quarter 2023, beating the Zacks Consensus Estimate by 13.4%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 57 cents.
Net earnings in the reported quarter were $22.5 million compared with $16.6 million in the year-ago quarter. The year-over-year improvement can be primarily attributed to higher revenues.
Quarterly net sales increased to $175.9 million from $137.8 million in the year-ago quarter. The 28% rise was primarily driven by robust demand for smart water solutions and improving operating environment. Also, the top line beat the consensus mark by 10.8%.
Segmental Performance
In the quarter under review, utility water sales rose 32% due to strong demand momentum. Higher E-Series volume, cellular AMI solution, ORION Cellular endpoint sales and higher BEACON Software-as-a-Service revenues acted as major tailwinds.
Flow instrumentation sales increased 6% year over year, driven by continued strong order trends across most of the water-focused end market and modestly easing supply-chain woes.
Other Details
In the second quarter, gross profit was $69.4 million, up 26.7% year over year. Favorable sales mix (higher SaaS revenues), efficiencies achieved across production and stabilizing inflationary pressures resulted in this upside. The gross margin was 39.5%, down 20 basis points from the prior-year quarter. Operating earnings were $29.5 million or 16.8% of sales compared with $22.1 million or 16% of sales in the year-earlier quarter.
Selling, engineering and administration expenses were $39.9 million or 22.7% of sales compared with $32.7 million or 23.7% of sales in the prior-year quarter. The increase in expenses was mainly due to higher personnel costs, travel expenses and the acquisition of Syrinix.
Cash Flow & Liquidity
In the second quarter of 2023, Badger Meter generated $22.8 million of net cash from operating activities compared with $19.7 million a year ago. As of Jun 30, 2023, the company had $141.8 million of cash and cash equivalents and $118.9 million of total current liabilities compared with the respective figures of $128.4 million and $115.8 million as of Mar 31, 2023.
Zacks Rank
Badger Meter currently has a Zacks Rank #2 (Buy)
Other Stocks to Consider
Some other top-ranked stocks in the broader technology space are InterDigital (IDCC - Free Report) , Blackbaud (BLKB - Free Report) and Woodward (WWD - Free Report) . InterDigital sports a Zacks Rank #1 (Strong Buy), while Blackbaud and Woodward carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for InterDigital’s 2023 EPS has increased 0.1% in the past 60 days to $8.08. The company’s long-term earnings growth rate is 13.9%.
InterDigital’s earnings beat estimates in all the trailing four quarters, delivering an average surprise of 170.9%. Shares of IDCC have rallied 52% in the past year.
The consensus estimate for Blackbaud’s 2023 EPS is pegged at $3.75, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 21.9%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average beat being 10.4%. Shares of BLKB have soared 35.1% in the past year.
The Zacks Consensus Estimate for Woodward’s fiscal 2023 EPS has increased 0.3% in the past 60 days to $3.59.
WWD’s long-term earnings growth rate is 13.5%. Shares of WWD have gained 12% in the past year.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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