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Badger Meter (BMI) Q2 Earnings & Revenues Beat Estimates
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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%.
Badger Meter, Inc. Price, Consensus and EPS Surprise
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.
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 (BMI) Q2 Earnings & Revenues Beat Estimates
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%.
Badger Meter, Inc. Price, Consensus and EPS Surprise
Badger Meter, Inc. price-consensus-eps-surprise-chart | Badger Meter, Inc. Quote
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.