Manufacturer Badger Meter beats Q2 revenue estimates on higher sales

Overview

• Badger Meter, which makes products to measure and control the flow of water, saw Q2 sales rise 10% yr/yr

• Diluted EPS for Q2 increases 4% to $1.17

• Utility water sales grow 11% yr/yr, driven by digital smart water solutions

Outlook

• Badger Meter projects high single-digit revenue growth long-term

• Company sees favorable industry fundamentals supporting growth

• Badger Meter expects SmartCover synergies to enhance future results

• Company continues to manage tariff impacts effectively

Result Drivers

• DIGITAL SOLUTIONS - Growth driven by increased adoption of digital smart water solutions, including metering and remote monitoring

• SMARTCOVER ACQUISITION - Utility water sales boosted by first full quarter of SmartCover acquisition

• FLOW INSTRUMENTATION - Sales flat as growth in water markets offset by declines in non-water applications

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Badger Meter Inc is $235.00, about 4.3% below its July 21 closing price of $245.22

• The stock recently traded at 46 times the next 12-month earnings vs. a P/E of 40 three months ago

Press Release: ID:nBw21tVZDa