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What to Expect From Badger Meter Stock Ahead of its Q3 Earnings

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Badger Meter, Inc. (BMI - Free Report) is slated to release its third-quarter 2024 earnings report, before market open on Oct. 17.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The Zacks Consensus Estimate for revenues is pegged at $209.01 million, which implies growth of 12.3% from the year-ago reported number. The consensus mark for earnings is pegged at $1.02 per share, indicating a year-over-year increase of 15.9%. In the past 60 days, analysts have increased their earnings estimates for the current quarter by 2%.

Badger Meter, Inc. Price and EPS Surprise

Badger Meter, Inc. Price and EPS Surprise

Badger Meter, Inc. price-eps-surprise | Badger Meter, Inc. Quote

The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 12.9%. In the past year, shares have gained 64.9% compared with sub-industry's rise of 21.7%.

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What Does Our Model Say for BMI?

Our proven model predicts an earnings beat for BMI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here, as you can see below.

BMI has an Earnings ESP of +3.45% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Factors to Focus Ahead of BMI’s Q3 Earnings

Continued demand for its innovative smart water solutions, including E-Series ultrasonic meters, ORION Cellular endpoints and BEACON Software-as-a-Service is likely to have driven BMI’s top line. The dynamics of secular trends in the water industry have been driving the demand for cutting-edge digital water solutions. In the last reported quarter, utility water sales surged 26%, driven by solid demand momentum. Stable demand across water-focused end markets has been driving Flow Instrumentation sales.

The introduction of the BlueEdge platform in May 2024 is likely to have aided top-line expansion. BlueEdge framework has been designed to simplify its comprehensive suite of scalable water solutions. This platform is an umbrella term that combines water technology, software and services to enhance customer experience with efficient water management.

Badger Meter is continuously prioritizing and enhancing its presence in selected regional markets outside the United States that offer healthy growth potential. The company is likely to have benefited by expanding its market share in water-related applications.

Synergies stemming from acquisitions are another growth catalyst. The acquisition of remote water monitoring solutions from Trimble, including the Telog brand and Trimble Unity Remote Monitoring software, earlier in 2024, is likely to have favorably impacted BMI’s top-line results.

Nonetheless, management expects to witness tougher year-over-year comparisons as the year progresses and higher expenses owing to incremental growth investments. An uncertain global macroeconomic backdrop, forex volatility and intensified competition are added headwinds.

Other Stocks With Favorable Combination

Here are some other stocks you may consider, as our proven model shows that these, too, have the right mix of elements to beat estimates this earnings season.

Equifax (EFX - Free Report) currently has an Earnings ESP of +1.56% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.

It is scheduled to release results for the third quarter of 2024 on Oct. 16. The Zacks Consensus Estimate for Equifax’s to-be-reported quarter’s earnings and revenues is pegged at $1.84 per share and $1.44 billion, respectively. Shares of EFX have gained 58.5% in the past year.

Netflix (NFLX - Free Report) has an Earnings ESP of +1.37% and a Zacks Rank #2 at present. It is scheduled to release third-quarter 2024 results on Oct. 17. The Zacks Consensus Estimate for Netflix’s to-be-reported quarter’s earnings and revenues is pegged at $5.07 per share and $9.77 billion, respectively. Shares of NFLX have gained 100.3% in the past year.  

Abbott Laboratories (ABT - Free Report) has an Earnings ESP of +0.18% and a Zacks Rank #2 at present. It is scheduled to release third-quarter 2024 results on Oct. 16. The Zacks Consensus Estimate for Abbott’s to-be-reported quarter’s earnings and revenues is pegged at $1.20 per share and $10.56 billion, respectively. Shares of ABT have gained 25.9% in the past year.


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