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Badger Meter (BMI) Up 13.1% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Badger Meter (BMI - Free Report) . Shares have added about 13.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Badger Meter due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Badger Meter Q2 Earnings & Revenues Top Estimates, Up Y/Y
Badger Meter reported earnings of 57 cents per share for second-quarter 2022, beating the Zacks Consensus Estimate of 53 cents. Also, the bottom line compares favorably with the year-ago quarter’s earnings of 48 cents.
Net earnings in the reported quarter were $16.7 million compared with $14 million in the year-ago quarter. The year-over-year improvement can be primarily attributed to higher revenues.
Revenues
Quarterly net sales increased to $137.8 million from $122.9 million in the year-ago quarter. The 12.2% rise was primarily due to record order rates, driven by robust customer demand, effective supply chain management and continued price realization, partly offset by inflationary cost pressure and supply-chain challenges.
Also, the top line beats the consensus mark of $135.5 million.
Following the announcement, shares of the company jumped 5.5% on Jul 20, 2022 and closed the session at $87.26.
Segmental Performance
In the quarter under review, utility water sales soared 14%, owing to strong order momentum. Also, strength in ultrasonic meters, ORION Cellular endpoint sales, and higher BEACON Software-as-a-Service (SaaS) revenues acted as major tailwinds. Supply chain disruptions partly offset this.
Flow instrumentation sales increased 4% 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 June-ended quarter, gross profit was $54.8 million, up 9.3% from $50.1 million in the year-earlier quarter. The gross margin was 39.7%, down from the 40.8% recorded in the prior-year quarter. This downside in the margin was primarily driven by rising material, logistics and other costs. Operating earnings were $22.1 million or 16% of sales compared with respective tallies of $18.7 million and 15.2% in the year-earlier quarter.
Selling, engineering, and administration (SEA) expenses were $32.7 million or 23.7% of sales compared with $31.4 million or 25.6% in the prior-year quarter. Effective spending controls and higher sales mainly drove the year-over-year improvement in SEA expense leverage.
Cash Flow & Liquidity
During the second quarter of 2022, Badger Meter generated $19.7 million of net cash from operating activities compared with $14.5 million a year ago. As of Jun 30, 2022, the company had $100.2 million of cash and cash equivalents and $97.3 million of total current liabilities compared with the respective tallies of $87.2 million and $82.1 million, as of Dec 31, 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 8.11% due to these changes.
VGM Scores
At this time, Badger Meter has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Badger Meter has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Badger Meter (BMI) Up 13.1% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Badger Meter (BMI - Free Report) . Shares have added about 13.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Badger Meter due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Badger Meter Q2 Earnings & Revenues Top Estimates, Up Y/Y
Badger Meter reported earnings of 57 cents per share for second-quarter 2022, beating the Zacks Consensus Estimate of 53 cents. Also, the bottom line compares favorably with the year-ago quarter’s earnings of 48 cents.
Net earnings in the reported quarter were $16.7 million compared with $14 million in the year-ago quarter. The year-over-year improvement can be primarily attributed to higher revenues.
Revenues
Quarterly net sales increased to $137.8 million from $122.9 million in the year-ago quarter. The 12.2% rise was primarily due to record order rates, driven by robust customer demand, effective supply chain management and continued price realization, partly offset by inflationary cost pressure and supply-chain challenges.
Also, the top line beats the consensus mark of $135.5 million.
Following the announcement, shares of the company jumped 5.5% on Jul 20, 2022 and closed the session at $87.26.
Segmental Performance
In the quarter under review, utility water sales soared 14%, owing to strong order momentum. Also, strength in ultrasonic meters, ORION Cellular endpoint sales, and higher BEACON Software-as-a-Service (SaaS) revenues acted as major tailwinds. Supply chain disruptions partly offset this.
Flow instrumentation sales increased 4% 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 June-ended quarter, gross profit was $54.8 million, up 9.3% from $50.1 million in the year-earlier quarter. The gross margin was 39.7%, down from the 40.8% recorded in the prior-year quarter. This downside in the margin was primarily driven by rising material, logistics and other costs. Operating earnings were $22.1 million or 16% of sales compared with respective tallies of $18.7 million and 15.2% in the year-earlier quarter.
Selling, engineering, and administration (SEA) expenses were $32.7 million or 23.7% of sales compared with $31.4 million or 25.6% in the prior-year quarter. Effective spending controls and higher sales mainly drove the year-over-year improvement in SEA expense leverage.
Cash Flow & Liquidity
During the second quarter of 2022, Badger Meter generated $19.7 million of net cash from operating activities compared with $14.5 million a year ago. As of Jun 30, 2022, the company had $100.2 million of cash and cash equivalents and $97.3 million of total current liabilities compared with the respective tallies of $87.2 million and $82.1 million, as of Dec 31, 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 8.11% due to these changes.
VGM Scores
At this time, Badger Meter has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Badger Meter has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.