NYSE$BMI

Badger Meter Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Badger Meter reported a solid start to the year with sales growth and record order rates, but gross margins were pressured by inflation and supply chain challenges.

Badger Meter reported a 12% increase in total sales, reaching $132.4 million, and diluted earnings per share of $0.49. The company experienced robust demand and record order pace, but faced inflationary pressures and supply chain challenges that impacted gross margins.

  • Total sales increased by 12% to $132.4 million compared to the prior year quarter.
  • Diluted earnings per share (EPS) were $0.49, compared to $0.47 in the prior year period.
  • Utility water sales increased 15% year-over-year.
  • Gross margin was 38.3%, a decrease from 41.9% in the prior year comparable quarter due to inflationary pressures and production volatility.

Headline financials

Total Revenue

$132M

Previous: $118M+12.4%
EPS (adj)

$0.49

Previous: $0.47+4.3%
Operating Margin

14.2%

Previous: 15.1%-6.0%
Capital Expenditures

-$1.14M

Previous: -$1.76M+35.1%
Free Cash Flow

$13.2M

Previous: $12M+10.0%
Net Income

$14.4M

Previous: $13.8M+4.2%
Operating Income

$18.9M

Previous: $17.7M+6.3%
Gross Profit

$50.7M

Previous: $49.4M+2.8%
Cash & Equivalents

$89.2M

Previous: $51.4M+73.6%
Total Assets

$546M

Previous: $486M+12.3%
Stock-Based Comp

$615K

Previous: $374K+64.4%

Revenue & EPS history

Badger Meter · Revenue · Quarterly

$132M

Q1 2022+12.4%vs Q1 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

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

  • Municipal Water
    $8M

Forward guidance

Badger Meter anticipates near term unevenness in the market but remains confident in their ability to execute strategic plans and address customer requirements to enhance operational efficiency and resiliency.

Tailwinds

  • Actions taken to improve operating resiliency.
  • Longstanding portfolio of solutions designed to fulfill varied customer needs.
  • Ability to secure supply and strategically price solutions.
  • Strong industry demand fundamentals.
  • Comprehensive offering of innovative and tailorable smart water solutions.

Headwinds

  • Recent geopolitical events have increased supply chain uncertainty.
  • Accelerated inflationary pressures in an already difficult environment.
  • Near term unevenness appears to be the norm.
  • COVID-19 on the global economy
  • Supply chain risk

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 2022

Historical avgQ1 2022

+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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