Badger Meter (BMI) to Post Q3 Earnings: Key Factors to Note
Badger Meter BMI is slated to report third-quarter results on Oct 19.
The Zacks Consensus Estimate for revenues is pegged at $172.9 million, which suggests growth of 16.8% from the year-ago levels. The consensus mark for earnings is pegged at 76 cents per share, indicating a year-over-year increase of 24.6%.
The company’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 6.7%.
Badger Meter, Inc. Price and EPS Surprise
Badger Meter, Inc. price-eps-surprise | Badger Meter, Inc. Quote
Factors to Note
The top-line performance in the third quarter is likely to have benefited from robust demand across business segments and increased adoption of its differentiated smart water solutions.
Demand for digital smart water solutions has been increasing owing to changing secular challenges in the water industry. In the last reported quarter, utility water sales rose 32% due to strong demand momentum.
The acquisition of Syrinix is likely to have acted as a tailwind. BMI is expected to have benefited from increasing customer backlogs and an improvement in the operating environment.
Healthy adoption of E-Series, ultrasonic meters, ORION Cellular endpoint and BEACON Software-as-a-Service augurs well. Apart from that, growing SaaS revenues is a major tailwind.
The Flow instrumentation segment is expected to have been aided by strong order trends across most of the water-focused end market and easing supply-chain woes. Also, effective spending controls are likely to have helped the company in improving its selling, engineering and administration expenses leverage.
However, rising global macroeconomic uncertainty and unfavorable foreign currency movement are likely to have been headwinds. Increasing competition in the digital smart water solutions space and higher research and development costs are concerns.
What Our Model Says
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.
BMI has an Earnings ESP of +4.14% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With Favorable Combination
Here are some stocks you may consider as our proven model shows that these too have the right mix of elements to beat estimates this time around.
Matador Resources Company MTDR has an Earnings ESP of +6.04% and currently sports a Zacks Rank #1. MTDR is scheduled to report quarterly earnings on Oct 24. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MTDR’s to-be-reported quarter’s earnings and revenues is pegged at $1.54 per share and $679.4 million, respectively. Shares of MTDR have gained 3.4% in the past year.
Elevance Health, Inc ELV has an Earnings ESP of +0.09% and presently carries a Zacks Rank #3. ELV is slated to release quarterly numbers on Oct 18.
The Zacks Consensus Estimate for ELV’s to-be-reported quarter’s earnings and revenues is pegged at $8.45 per share and $42.53 billion, respectively. Shares of ELV have lost 3.3% of their value in the past year.
Lam Research Corporation LRCX has an Earnings ESP of +0.03% and a Zacks Rank #2. LRCX is set to report quarterly figures on Oct 18.
The Zacks Consensus Estimate for LRCX’s to-be-reported quarter’s earnings and revenues is pegged at $6.07 per share and $3.41 billion, respectively. Shares of LRCX have surged 102.8% in the past year.
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Badger Meter, Inc. (BMI) : Free Stock Analysis Report
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