Fluid meters manufacturer Badger Meter beats Q3 sales forecast, raises dividend

Overview

• Badger Meter Q3 sales rise 13% yr/yr, beating analyst expectations

• Diluted EPS for Q3 increases 10% to $1.19 compared to $1.08 last year

• Company raises annual dividend rate by 18%, marking 33rd consecutive yr of growth

Outlook

• Badger Meter expects high-single-digit average revenue growth over the next five years

• Company raises normalized gross margin range to 39-42% from 38-40%

• Company monitors global tariff and supply chain dynamics for agility

Result Drivers

• SALES GROWTH - 13% increase in total sales driven by strong demand for utility water products, including BEACON SaaS and ultrasonic water meters

• SMARTCOVER INTEGRATION - Successful integration of SmartCover acquisition contributed to sales growth in Q3, according to CEO

• GROSS MARGIN IMPROVEMENT - Gross margin increased to 40.7% from 40.2% in prior year qtr, aided by structural benefits

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "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 $208.00, about 9.9% above its October 20 closing price of $187.41

• The stock recently traded at 36 times the next 12-month earnings vs. a P/E of 47 three months ago

Press Release: ID:nBwbzJtfla

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.