NYSE$BMI

Badger Meter Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Badger Meter reported a 3% increase in net sales and an 11% increase in EPS compared to the prior year quarter.

Badger Meter reported a strong operational performance in Q1 2020, with net sales increasing by 3% and EPS increasing by 11% year-over-year, despite the challenges posed by the COVID-19 pandemic.

  • Net sales for the first quarter of 2020 were $108.5 million, an increase of 3% compared to $104.9 million in the prior year quarter.
  • Municipal water sales increased 6% year-over-year.
  • Net earnings and diluted earnings per share (EPS) were $11.9 million and $0.41, respectively, compared to $10.8 million and $0.37 in the prior year period.
  • Cash provided by operations was $30.5 million, representing strong earnings conversion.

Headline financials

Total Revenue

$109M

Previous: $105M+3.5%
EPS (adj)

$0.41

Previous: $0.37+10.8%
Operating Margin

14.8%

Previous: 13.7%+8.0%
Gross Profit Margin

39.9%

Previous: 38.6%+3.4%
Capital Expenditures

-$1.94M

Previous: -$2.16M+10.1%
Free Cash Flow

$9.91M

Previous: $8.66M+14.4%
Net Income

$11.9M

Previous: $10.8M+9.5%
Operating Income

$16M

Previous: $14.3M+11.8%
Gross Profit

$43.3M

Previous: $40.5M+7.1%
Cash & Equivalents

$70.4M

Previous: $15M+368.1%
Total Assets

$431M

Previous: $403M+6.9%
Stock-Based Comp

$307K

Previous: $265K+15.8%

Revenue & EPS history

Badger Meter · Revenue · Quarterly

$109M

Q1 2020+3.5%vs Q1 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Badger Meter · $8M total across 1 segment · Q4 2019

  • Municipal Water
    $8M

Forward guidance

The extent of the impact of COVID-19 on the global economy and the company’s financial results is uncertain and continues to rapidly evolve. Overall activity in the end markets served is beginning to slow, with customers now starting to signal potential project delays, deferral of orders and channel inventory de-stocking.

Tailwinds

  • Remain committed to effectively managing working capital and cash costs in order to preserve liquidity.
  • Have approximately $70 million in cash on the balance sheet.
  • Have $125 million of revolving credit availability.
  • Remain focused on innovation and continue on track to launch new products in 2020.
  • Expect long-term opportunities for Badger Meter from automated meter reading adoption and remote actuation of flow restriction technology.

Headwinds

  • Overall activity in the end markets served is beginning to slow.
  • Customers are starting to signal potential project delays.
  • Customers are starting to signal deferral of orders.
  • Customers are starting to signal channel inventory de-stocking.
  • Modest supply disruption, cargo capacity constraints and related shortages of components may impact operations over the next several months.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.6%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+3.6%

Avg return

30 days after

58%

38 / 66 earnings

Positive

+17.8%

Q3 2012

Best reaction

-13.2%

Q3 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.5%-18.9%-25.5%
Q4 2025-11.0%-7.7%-7.3%
Q3 2025-5.5%-0.1%-10.3%
Q2 2025-1.0%-2.8%-7.9%
Q1 2025+9.6%+13.4%+33.2%
Q4 2024+2.6%+6.2%+0.8%
Q3 2024-5.5%-9.5%-2.0%
Q2 2024+3.9%+3.7%+3.1%
Q1 2024+15.5%+21.8%+28.9%
Q4 2023-3.9%-5.5%+2.8%
Q3 2023+1.6%+1.6%+10.1%
Q2 2023+12.6%+13.2%+9.5%
Q1 2023+12.6%+10.2%+18.1%
Q4 2022-3.2%+2.5%+1.1%
Q3 2022+0.7%+7.2%+19.8%
Q2 2022+9.5%+7.9%+22.4%
Q1 2022-7.1%-11.3%-17.8%
Q4 2021+17.3%+19.7%+16.0%
Q3 2021-0.6%+1.1%+6.3%
Q2 2021+4.6%+5.9%+8.2%
Q1 2021-1.9%+1.0%-3.7%
Q4 2020-2.7%-0.4%+12.4%
Q3 2020+7.6%+5.0%+6.7%
Q2 2020-4.1%-3.1%+2.9%
Q1 2020+11.7%+6.8%+6.7%
Q4 2019+6.0%+10.5%+3.1%
Q3 2019+17.2%+13.7%+14.3%
Q2 2019-7.3%-7.2%-7.2%
Q1 2019-3.1%-3.3%-9.8%
Q4 2018+8.1%+10.1%+5.8%
Q3 2018-2.3%-3.1%+6.4%
Q2 2018+11.5%+14.9%+15.0%
Q1 2018-8.2%-5.7%-6.7%
Q4 2017-0.5%-3.0%+1.2%
Q3 2017-13.2%-14.8%-14.9%
Q2 2017+8.0%+9.7%+6.8%
Q1 2017+10.1%+15.0%+8.0%
Q4 2016-8.9%-7.0%-11.1%
Q3 2016-7.1%-4.3%+5.6%
Q2 2016-4.9%-6.3%-7.4%
Q1 2016+11.0%
Q4 2015+0.6%
Q3 2015-5.2%
Q2 2015-10.9%
Q1 2015+0.3%
Q4 2014+0.6%
Q3 2014+1.5%
Q2 2014+5.1%
Q1 2014-3.0%
Q4 2013+4.7%
Q3 2013+4.3%
Q2 2013+2.3%
Q1 2013-10.5%
Q4 2012-5.1%
Q3 2012+17.8%
Q2 2012-9.0%
Q1 2011+2.7%
Q1 2012+2.9%
Q4 2009+3.9%
Q4 2011+3.9%
Q3 2010+9.9%
Q3 2011+9.9%
Q4 2010+1.1%
Q2 2010+1.1%
Q2 2011+1.1%
Q1 2010-0.6%

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