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Badger Meter (BMI) Q1 Earnings & Revenues Beat Estimates
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Badger Meter, Inc (BMI - Free Report) reported earnings of 66 cents per share for first-quarter 2023, beating the Zacks Consensus Estimate by 11.9%. Also, the bottom line compared favorably with the year-ago quarter’s earnings of 49 cents.
Net earnings in the reported quarter were $19.4 million compared with $14.4 million in the year-ago quarter. The year-over-year improvement can be primarily attributed to higher revenues.
Quarterly net sales increased to $159.1 million from $132.4 million in the year-ago quarter. The 20% rise was primarily driven by robust demand for smart water solutions and improving operating environment. Also, the top line beat the consensus mark of $144.3 million.
Badger Meter, Inc. Price, Consensus and EPS Surprise
Moreover, the company announced that it completed the acquisition of Syrinix in the quarter under review. In January, Badger Meter acquired UK-based intelligent water monitoring solutions company — Syrinix — for £15 million in an all-cash deal.
Syrinix offers leak exposure and pressure monitoring solutions within water distribution and collection networks. The company’s cloud-powered software platform generates data and customized alerts, and insights to aid asset monitoring in real time for clients. The integration of Syrinix’s solutions will aid Badger Meter to provide its clients with an expanded portfolio that will aid in preserving precious resources like water as well as improve asset life.
In the past year, shares of BMI have gained 56.4% compared with the Zacks sub-industry’s increase of 2.5%.
Image Source: Zacks Investment Research
Segmental Performance
In the quarter under review, utility water sales rose 20%, owing to strong demand momentum. Higher E-Series volume, ultrasonic meters, cellular AMI solution, ORION Cellular endpoint sales and higher BEACON Software-as-a-Service revenues acted as major tailwinds.
Flow instrumentation sales increased 22% 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
During the March quarter, gross profit was $62.8 million, up 23.8% year over year. The gross margin was 39.5%, up 120 basis points from the prior-year quarter. Favorable sales mix (higher SaaS revenues), efficiencies achieved across production and stabilizing inflationary pressures resulted in this upside. Operating earnings were $25.1 million or 15.7% of sales compared with $18.9 million and 14.2% of sales in the year-earlier quarter.
Selling, engineering and administration expenses were $37.8 million or 23.7% of sales compared with $31.9 million or 24.1% of sales in the prior-year quarter. The increase in expenses was mainly due to higher personnel costs and travel expenses along with the acquisition of Syrinix.
Cash Flow & Liquidity
During the first quarter of 2023, Badger Meter generated $18 million of net cash from operating activities compared with $9.3 million a year ago. As of Mar 31, the company had $128.4 million of cash and cash equivalents and $115.8 million of total current liabilities compared with the respective figures of $138.1 million and $110.3 million as of Dec 31, 2022.
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Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.2%. Shares of ANET have increased 32% in the past year.
The Zacks Consensus Estimate for Asure Software’s 2023 earnings has increased 25% in the past 60 days to 35 cents per share. The long-term earnings growth rate is anticipated to be 25%.
Asure Software’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 445.8%. Shares of ASUR have increased 176.1% in the past year.
The Zacks Consensus Estimate for Salesforce’s 2023 earnings has increased 21.5% in the past 60 days to $7.11 per share. The long-term earnings growth rate is anticipated to be 16.8%.
Salesforce’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 15.6%. Shares of the company have increased 15.2% in the past year.
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Badger Meter (BMI) Q1 Earnings & Revenues Beat Estimates
Badger Meter, Inc (BMI - Free Report) reported earnings of 66 cents per share for first-quarter 2023, beating the Zacks Consensus Estimate by 11.9%. Also, the bottom line compared favorably with the year-ago quarter’s earnings of 49 cents.
Net earnings in the reported quarter were $19.4 million compared with $14.4 million in the year-ago quarter. The year-over-year improvement can be primarily attributed to higher revenues.
Quarterly net sales increased to $159.1 million from $132.4 million in the year-ago quarter. The 20% rise was primarily driven by robust demand for smart water solutions and improving operating environment. Also, the top line beat the consensus mark of $144.3 million.
Badger Meter, Inc. Price, Consensus and EPS Surprise
Badger Meter, Inc. price-consensus-eps-surprise-chart | Badger Meter, Inc. Quote
Moreover, the company announced that it completed the acquisition of Syrinix in the quarter under review. In January, Badger Meter acquired UK-based intelligent water monitoring solutions company — Syrinix — for £15 million in an all-cash deal.
Syrinix offers leak exposure and pressure monitoring solutions within water distribution and collection networks. The company’s cloud-powered software platform generates data and customized alerts, and insights to aid asset monitoring in real time for clients. The integration of Syrinix’s solutions will aid Badger Meter to provide its clients with an expanded portfolio that will aid in preserving precious resources like water as well as improve asset life.
In the past year, shares of BMI have gained 56.4% compared with the Zacks sub-industry’s increase of 2.5%.
Image Source: Zacks Investment Research
Segmental Performance
In the quarter under review, utility water sales rose 20%, owing to strong demand momentum. Higher E-Series volume, ultrasonic meters, cellular AMI solution, ORION Cellular endpoint sales and higher BEACON Software-as-a-Service revenues acted as major tailwinds.
Flow instrumentation sales increased 22% 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
During the March quarter, gross profit was $62.8 million, up 23.8% year over year. The gross margin was 39.5%, up 120 basis points from the prior-year quarter. Favorable sales mix (higher SaaS revenues), efficiencies achieved across production and stabilizing inflationary pressures resulted in this upside. Operating earnings were $25.1 million or 15.7% of sales compared with $18.9 million and 14.2% of sales in the year-earlier quarter.
Selling, engineering and administration expenses were $37.8 million or 23.7% of sales compared with $31.9 million or 24.1% of sales in the prior-year quarter. The increase in expenses was mainly due to higher personnel costs and travel expenses along with the acquisition of Syrinix.
Cash Flow & Liquidity
During the first quarter of 2023, Badger Meter generated $18 million of net cash from operating activities compared with $9.3 million a year ago. As of Mar 31, the company had $128.4 million of cash and cash equivalents and $115.8 million of total current liabilities compared with the respective figures of $138.1 million and $110.3 million as of Dec 31, 2022.
Zacks Rank & Other Stocks to Consider
Badger Meter currently has a Zacks Rank #2 (Buy)
Some other top-ranked stocks in the broader technology space are Arista Networks (ANET - Free Report) , Asure Software (ASUR - Free Report) and Salesforce (CRM - Free Report) . Asure Software and Salesforce currently sport a Zacks Rank #1 (Strong Buy) whereas Arista Networks carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Arista Networks’ 2023 earnings has increased 1.2% in the past 60 days to $5.83 per share. The long-term earnings growth rate is anticipated to be 14.2%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.2%. Shares of ANET have increased 32% in the past year.
The Zacks Consensus Estimate for Asure Software’s 2023 earnings has increased 25% in the past 60 days to 35 cents per share. The long-term earnings growth rate is anticipated to be 25%.
Asure Software’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 445.8%. Shares of ASUR have increased 176.1% in the past year.
The Zacks Consensus Estimate for Salesforce’s 2023 earnings has increased 21.5% in the past 60 days to $7.11 per share. The long-term earnings growth rate is anticipated to be 16.8%.
Salesforce’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 15.6%. Shares of the company have increased 15.2% in the past year.