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Badger Meter (BMI) Surges 31% YTD: Will the Uptrend Continue?
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Badger Meter, Inc (BMI - Free Report) , a leading manufacturer and marketer of flow measurement, quality, control and communication solutions, is witnessing strong momentum this year with shares gaining 30.6% year to date, compared with the sub-industry’s rise of 12.6%.
The increase in share price is driven by the company’s robust financial performance. The company came up with an impressive performance in first-quarter 2023.
Badger Meter 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 per share. Quarterly net sales increased 20% to $159.1 million from $132.4 million in the year-ago quarter. Utility water sales rose 20%, while Flow instrumentation sales increased 22% year over year.
Badger Meter’s performance was driven by robust customer demand and strong order trends across the majority of end-market applications globally. Continued strength in E-Series, ultrasonic meters, cellular AMI solution, ORION Cellular endpoint sales and higher BEACON Software-as-a-Service revenues acted as major tailwinds.
Image Source: Zacks Investment Research
The company is likely to benefit from increasing customer backlogs and an improving operating environment. Also, effective spending controls and higher sales are likely to help in improving selling, engineering and administration expenses leverage. In the last reported quarter, 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.
A strong cash position with no long-term debt and ongoing price realization bode well. Synergies from the acquisition are likely to further drive the company’s top and the bottom lines going forward. In January 2023, the company acquired the 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.
Syrinix’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 in providing its clients with an expanded portfolio that will aid in preserving precious resources like water as well as improve asset life.
Notably, Badger Meter currently has a Zacks Rank #2 (Buy).
Apart from a favorable rank, BMI has a Growth Score of B. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank of 1 (Strong Buy) or #2 and a VGM Score of A or B offer solid investment opportunities.
The Zacks Consensus Estimate for 2023 and 2024 revenues has increased 4.7% and 6.6%, respectively in the past 60 days, reflecting analysts’ optimism regarding the company’s prospects.
The Zacks Consensus Estimate for Woodward’s fiscal 2023 earnings has increased 9.1% in the past 60 days to $3.58 per share. WWD’s long-term earnings growth rate stands at 13.5%. Shares have surged 12.7% in the past year.
The consensus estimate for Simulations Plus’ fiscal 2023 earnings has improved by 1 cent in the past 60 days to 66 cents per share. Shares of SLP have lost 4.9% in the past year.
The consensus mark for Blackbaud’s 2023 earnings is pegged at $3.68 per share, up 7.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 10.4%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 10.4%. Shares of BLKB have increased 17% in the past year.
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Badger Meter (BMI) Surges 31% YTD: Will the Uptrend Continue?
Badger Meter, Inc (BMI - Free Report) , a leading manufacturer and marketer of flow measurement, quality, control and communication solutions, is witnessing strong momentum this year with shares gaining 30.6% year to date, compared with the sub-industry’s rise of 12.6%.
The increase in share price is driven by the company’s robust financial performance. The company came up with an impressive performance in first-quarter 2023.
Badger Meter 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 per share. Quarterly net sales increased 20% to $159.1 million from $132.4 million in the year-ago quarter. Utility water sales rose 20%, while Flow instrumentation sales increased 22% year over year.
Badger Meter’s performance was driven by robust customer demand and strong order trends across the majority of end-market applications globally. Continued strength in E-Series, ultrasonic meters, cellular AMI solution, ORION Cellular endpoint sales and higher BEACON Software-as-a-Service revenues acted as major tailwinds.
Image Source: Zacks Investment Research
The company is likely to benefit from increasing customer backlogs and an improving operating environment. Also, effective spending controls and higher sales are likely to help in improving selling, engineering and administration expenses leverage. In the last reported quarter, 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.
A strong cash position with no long-term debt and ongoing price realization bode well. Synergies from the acquisition are likely to further drive the company’s top and the bottom lines going forward. In January 2023, the company acquired the 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.
Syrinix’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 in providing its clients with an expanded portfolio that will aid in preserving precious resources like water as well as improve asset life.
Notably, Badger Meter currently has a Zacks Rank #2 (Buy).
Apart from a favorable rank, BMI has a Growth Score of B. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank of 1 (Strong Buy) or #2 and a VGM Score of A or B offer solid investment opportunities.
The Zacks Consensus Estimate for 2023 and 2024 revenues has increased 4.7% and 6.6%, respectively in the past 60 days, reflecting analysts’ optimism regarding the company’s prospects.
Other Stocks to Consider
Some other top-ranked stocks in the broader technology space are Woodward (WWD - Free Report) , Simulations Plus (SLP - Free Report) and Blackbaud (BLKB - Free Report) . BLKB sports a Zacks Rank of 1 whereas SLP and WWD currently carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Woodward’s fiscal 2023 earnings has increased 9.1% in the past 60 days to $3.58 per share. WWD’s long-term earnings growth rate stands at 13.5%. Shares have surged 12.7% in the past year.
The consensus estimate for Simulations Plus’ fiscal 2023 earnings has improved by 1 cent in the past 60 days to 66 cents per share. Shares of SLP have lost 4.9% in the past year.
The consensus mark for Blackbaud’s 2023 earnings is pegged at $3.68 per share, up 7.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 10.4%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 10.4%. Shares of BLKB have increased 17% in the past year.