Badger Meter Q1 Earnings Miss Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy BMI?
Source: seekingalpha
- Disappointing Earnings: Badger Meter reported Q1 GAAP EPS of $0.93, missing expectations by $0.26, indicating a significant decline in profitability that may undermine investor confidence.
- Revenue Decline: The company generated $202.3 million in revenue for Q1, a 9% year-over-year decrease that fell short of the $230.88 million forecast, reflecting competitive pressures and weak demand in the market.
- Utility Water Sales Drop: Utility water sales decreased by 10% year-over-year, primarily due to project timing and softer municipal customer ordering, highlighting uncertainty in market demand that could impact future revenue growth.
- Flow Instrumentation Sales Down: Sales of flow instrumentation products fell by 4%, with modest growth in water-related markets more than offset by declining demand in de-emphasized market applications, suggesting a need for strategic reassessment in diversification efforts.
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Analyst Views on BMI
Wall Street analysts forecast BMI stock price to rise
7 Analyst Rating
5 Buy
1 Hold
1 Sell
Moderate Buy
Current: 152.290
Low
157.00
Averages
214.86
High
243.00
Current: 152.290
Low
157.00
Averages
214.86
High
243.00
About BMI
Badger Meter, Inc. is a manufacturer and marketer of products incorporating flow measurement, quality, control and other system solutions serving markets worldwide. Its offerings, marketed as BlueEdge, include a suite of tailorable solutions that connect water management technology, software and support services to deliver insights enabling the proactive management of water across the water cycle. Its solutions include measurement and control hardware, connectivity and communication, data visualization and software-delivered actionable insights, and ongoing support to optimize customers' operations. Its measurement and control hardware, instruments and sensors include product families, such as meters that measure the flow of water and other fluids, water quality monitoring solutions and high frequency pressure and acoustic leak detection hardware that provides real-time monitoring data. It offers a range of communication solutions including the ORION branded family of radio endpoints.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Badger Meter to Announce Q1 Earnings on April 17
- Earnings Announcement Schedule: Badger Meter (BMI) is set to announce its Q1 2023 earnings on April 17 before market open, with consensus EPS estimate at $1.22, reflecting a 6.2% year-over-year decline, and revenue estimate at $230.88 million, indicating a 3.9% year-over-year increase, which will provide crucial performance insights for investors.
- Historical Performance Review: Over the past two years, BMI has surpassed EPS estimates 75% of the time and revenue estimates 88% of the time, indicating a level of stability and reliability in financial performance that may bolster investor confidence.
- Expectation Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates, with 7 downward adjustments, while revenue estimates also saw no upward revisions and 5 downward adjustments, reflecting a cautious market outlook on the company's future performance that investors should monitor closely.
- Shareholder Return Plan: Badger Meter has declared a $0.40 per share dividend and expanded its share buyback program by $75 million, which not only demonstrates confidence in future cash flows but also enhances long-term shareholder returns, potentially increasing the attractiveness of its stock in the market.
See More
Badger Meter Shares Drop 17% After Q1 Earnings Miss
- Earnings Decline: Badger Meter reported Q1 earnings per share of $0.93, missing estimates by $0.26, while revenue of $202.03 million fell short of consensus by $28.58 million, indicating significant pressure in market competitiveness.
- Sales Drop: Utility water sales decreased by 10% year-over-year, primarily due to project timing and weaker short-cycle municipal customer orders, while flow instrumentation product sales also fell by 4%, reflecting shifts in market demand.
- Future Outlook: CEO Kenneth C. Bockhorst noted that project pacing dynamics are expected to improve in the second half of 2026, and despite the first quarter's performance lagging behind last year's, the company remains optimistic about future revenue growth potential.
- Poor Market Performance: Badger Meter shares have declined nearly 28% year-to-date, significantly underperforming the S&P 500's nearly 3% gain, highlighting investor concerns regarding the company's future performance.
See More
Badger Meter Acquires UDlive for $100 Million
- Acquisition Agreement: Badger Meter announced a definitive agreement to acquire UK-based UDlive for $100 million, with the transaction expected to close by the end of April 2026, significantly enhancing Badger Meter's market position in sewer line monitoring.
- Market Expansion Strategy: This acquisition aims to combine SmartCover's U.S. footprint with UDlive's operations in the UK, enhancing Badger Meter's global reach and strengthening its BlueEdge water management suite's competitive edge.
- Financial Performance: Badger Meter reported $22 million in revenue and a positive operating profit for the fiscal year ending February 28, 2026, indicating financial robustness despite a recent 3.01% decline in share price.
- Long-Term Investment Potential: Despite stock fluctuations, analysts still view Badger Meter as a good long-term buy at reasonable valuations, reflecting market confidence in its future growth potential.
See More
Badger Meter Q1 Earnings Miss Expectations
- Disappointing Earnings: Badger Meter reported Q1 GAAP EPS of $0.93, missing expectations by $0.26, indicating a significant decline in profitability that may undermine investor confidence.
- Revenue Decline: The company generated $202.3 million in revenue for Q1, a 9% year-over-year decrease that fell short of the $230.88 million forecast, reflecting competitive pressures and weak demand in the market.
- Utility Water Sales Drop: Utility water sales decreased by 10% year-over-year, primarily due to project timing and softer municipal customer ordering, highlighting uncertainty in market demand that could impact future revenue growth.
- Flow Instrumentation Sales Down: Sales of flow instrumentation products fell by 4%, with modest growth in water-related markets more than offset by declining demand in de-emphasized market applications, suggesting a need for strategic reassessment in diversification efforts.
See More
Badger Meter Reports Q1 2026 Earnings Decline Amid Acquisition Plans
- Sales Decline: Badger Meter reported total sales of $202.3 million for Q1 2026, a 9% decrease from $222.2 million in the previous year, primarily due to project timing variability and weaker short-cycle order rates, indicating short-term market challenges.
- Operating Profit Drop: Operating earnings fell to $35.2 million with a profit margin of 17.4%, down from $49.4 million and 22.2% last year, reflecting the direct impact of declining sales on profitability.
- Acquisition Plans: The company has entered into a definitive agreement to acquire UDlive, expected to close by the end of April 2026, which will enhance Badger Meter's capabilities in sewer monitoring and strengthen its leadership position in the global market.
- Future Outlook: Despite the disappointing first quarter, management anticipates increased project activity in the second half of the year, leading to sequential revenue improvement, while maintaining a positive outlook on long-term demand and competitive advantages in the North American smart water market.
See More
Badger Meter Stock Fluctuates Ahead of Earnings Report
- Stock Movement: Badger Meter (BMI) closed at $151.93, down 2.25% from the previous session, underperforming the S&P 500's gain of 0.08%, indicating market caution regarding its short-term performance.
- Earnings Expectations: The company is set to report earnings on April 17, 2026, with projected EPS of $1.22, reflecting a 6.15% decrease year-over-year, while revenue is expected to be $231.56 million, up 4.21%, suggesting some growth potential amid challenges.
- Analyst Optimism: The Zacks Consensus estimates forecast annual EPS of $5.04 and revenue of $966.41 million, indicating increases of 5.22% and 5.43% respectively compared to last year, reflecting analysts' positive outlook on the company's profitability.
- Valuation Analysis: Badger Meter currently trades at a Forward P/E ratio of 30.82, significantly above the industry average of 26.63, with a PEG ratio of 2.49, suggesting high market expectations for future growth, although this also implies higher investment risks.
See More
Badger Meter to Announce Q1 Earnings on April 17
- Earnings Announcement Schedule: Badger Meter (BMI) is set to announce its Q1 2023 earnings on April 17 before market open, with consensus EPS estimate at $1.22, reflecting a 6.2% year-over-year decline, and revenue estimate at $230.88 million, indicating a 3.9% year-over-year increase, which will provide crucial performance insights for investors.
- Historical Performance Review: Over the past two years, BMI has surpassed EPS estimates 75% of the time and revenue estimates 88% of the time, indicating a level of stability and reliability in financial performance that may bolster investor confidence.
- Expectation Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates, with 7 downward adjustments, while revenue estimates also saw no upward revisions and 5 downward adjustments, reflecting a cautious market outlook on the company's future performance that investors should monitor closely.
- Shareholder Return Plan: Badger Meter has declared a $0.40 per share dividend and expanded its share buyback program by $75 million, which not only demonstrates confidence in future cash flows but also enhances long-term shareholder returns, potentially increasing the attractiveness of its stock in the market.
See More
Badger Meter Shares Drop 17% After Q1 Earnings Miss
- Earnings Decline: Badger Meter reported Q1 earnings per share of $0.93, missing estimates by $0.26, while revenue of $202.03 million fell short of consensus by $28.58 million, indicating significant pressure in market competitiveness.
- Sales Drop: Utility water sales decreased by 10% year-over-year, primarily due to project timing and weaker short-cycle municipal customer orders, while flow instrumentation product sales also fell by 4%, reflecting shifts in market demand.
- Future Outlook: CEO Kenneth C. Bockhorst noted that project pacing dynamics are expected to improve in the second half of 2026, and despite the first quarter's performance lagging behind last year's, the company remains optimistic about future revenue growth potential.
- Poor Market Performance: Badger Meter shares have declined nearly 28% year-to-date, significantly underperforming the S&P 500's nearly 3% gain, highlighting investor concerns regarding the company's future performance.
See More
Badger Meter Acquires UDlive for $100 Million
- Acquisition Agreement: Badger Meter announced a definitive agreement to acquire UK-based UDlive for $100 million, with the transaction expected to close by the end of April 2026, significantly enhancing Badger Meter's market position in sewer line monitoring.
- Market Expansion Strategy: This acquisition aims to combine SmartCover's U.S. footprint with UDlive's operations in the UK, enhancing Badger Meter's global reach and strengthening its BlueEdge water management suite's competitive edge.
- Financial Performance: Badger Meter reported $22 million in revenue and a positive operating profit for the fiscal year ending February 28, 2026, indicating financial robustness despite a recent 3.01% decline in share price.
- Long-Term Investment Potential: Despite stock fluctuations, analysts still view Badger Meter as a good long-term buy at reasonable valuations, reflecting market confidence in its future growth potential.
See More
Badger Meter Q1 Earnings Miss Expectations
- Disappointing Earnings: Badger Meter reported Q1 GAAP EPS of $0.93, missing expectations by $0.26, indicating a significant decline in profitability that may undermine investor confidence.
- Revenue Decline: The company generated $202.3 million in revenue for Q1, a 9% year-over-year decrease that fell short of the $230.88 million forecast, reflecting competitive pressures and weak demand in the market.
- Utility Water Sales Drop: Utility water sales decreased by 10% year-over-year, primarily due to project timing and softer municipal customer ordering, highlighting uncertainty in market demand that could impact future revenue growth.
- Flow Instrumentation Sales Down: Sales of flow instrumentation products fell by 4%, with modest growth in water-related markets more than offset by declining demand in de-emphasized market applications, suggesting a need for strategic reassessment in diversification efforts.
See More
Badger Meter Reports Q1 2026 Earnings Decline Amid Acquisition Plans
- Sales Decline: Badger Meter reported total sales of $202.3 million for Q1 2026, a 9% decrease from $222.2 million in the previous year, primarily due to project timing variability and weaker short-cycle order rates, indicating short-term market challenges.
- Operating Profit Drop: Operating earnings fell to $35.2 million with a profit margin of 17.4%, down from $49.4 million and 22.2% last year, reflecting the direct impact of declining sales on profitability.
- Acquisition Plans: The company has entered into a definitive agreement to acquire UDlive, expected to close by the end of April 2026, which will enhance Badger Meter's capabilities in sewer monitoring and strengthen its leadership position in the global market.
- Future Outlook: Despite the disappointing first quarter, management anticipates increased project activity in the second half of the year, leading to sequential revenue improvement, while maintaining a positive outlook on long-term demand and competitive advantages in the North American smart water market.
See More
Badger Meter Stock Fluctuates Ahead of Earnings Report
- Stock Movement: Badger Meter (BMI) closed at $151.93, down 2.25% from the previous session, underperforming the S&P 500's gain of 0.08%, indicating market caution regarding its short-term performance.
- Earnings Expectations: The company is set to report earnings on April 17, 2026, with projected EPS of $1.22, reflecting a 6.15% decrease year-over-year, while revenue is expected to be $231.56 million, up 4.21%, suggesting some growth potential amid challenges.
- Analyst Optimism: The Zacks Consensus estimates forecast annual EPS of $5.04 and revenue of $966.41 million, indicating increases of 5.22% and 5.43% respectively compared to last year, reflecting analysts' positive outlook on the company's profitability.
- Valuation Analysis: Badger Meter currently trades at a Forward P/E ratio of 30.82, significantly above the industry average of 26.63, with a PEG ratio of 2.49, suggesting high market expectations for future growth, although this also implies higher investment risks.
See More
