Badger Meter Inc.’s (BMI - Free Report) second-quarter 2017 earnings per share rose 12.5% year over year to a record 36 cents and also beat the Zacks Consensus Estimate of 35 cents.
Sales in the quarter inched up 0.3% year over year to a record $104 million, but fell short of the Zacks Consensus Estimate of $108 million. Domestic residential and commercial municipal water product sales were flat year over year as some customers delayed orders to capitalize on the latest advancement in the ORION Cellular technology, the ORION Cellular Long-Term Evolution (LTE) endpoint, which began shipment in Jun 2017. Domestic sales of flow instrumentation products increased but were partially offset by fewer international projects. The oil and gas business also improved during the quarter.
Cost and Margins
Cost of sales decreased 2% year over year to $63 million. Gross profit in the quarter was $41 million, up 4% from $39.4 million in the prior-year quarter. Gross margin was 39.4%, a 150 basis points (bps) expansion from the year-ago quarter owing to pricing discipline, manufacturing cost controls and its strategy to acquire or consolidate much of distribution network. These actions helped negate the impact of higher brass costs.
Selling, engineering and administration expenses were flat year over year to $24.5 million owing mainly to staffing reductions in the flow instrumentation business in the second half of 2016 and lower health care expenses. Operating income went up 11% to $16.6 million from $14.9 million in the year-earlier quarter. Consequently, operating margin expanded 150 (bps) to 15.9%.
Badger Meter, Inc. Price, Consensus and EPS Surprise
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 a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent 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 >>
Badger Meter Inc.’s (BMI - Free Report) second-quarter 2017 earnings per share rose 12.5% year over year to a record 36 cents and also beat the Zacks Consensus Estimate of 35 cents.
Sales in the quarter inched up 0.3% year over year to a record $104 million, but fell short of the Zacks Consensus Estimate of $108 million. Domestic residential and commercial municipal water product sales were flat year over year as some customers delayed orders to capitalize on the latest advancement in the ORION Cellular technology, the ORION Cellular Long-Term Evolution (LTE) endpoint, which began shipment in Jun 2017. Domestic sales of flow instrumentation products increased but were partially offset by fewer international projects. The oil and gas business also improved during the quarter.
Cost and Margins
Cost of sales decreased 2% year over year to $63 million. Gross profit in the quarter was $41 million, up 4% from $39.4 million in the prior-year quarter. Gross margin was 39.4%, a 150 basis points (bps) expansion from the year-ago quarter owing to pricing discipline, manufacturing cost controls and its strategy to acquire or consolidate much of distribution network. These actions helped negate the impact of higher brass costs.
Selling, engineering and administration expenses were flat year over year to $24.5 million owing mainly to staffing reductions in the flow instrumentation business in the second half of 2016 and lower health care expenses. Operating income went up 11% to $16.6 million from $14.9 million in the year-earlier quarter. Consequently, operating margin expanded 150 (bps) to 15.9%.
Badger Meter, Inc. Price, Consensus and EPS Surprise
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 a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent 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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