NYSE$BMI

Badger Meter Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Badger Meter navigated COVID-19 challenges, delivering net sales and implementing cost control actions.

Badger Meter reported a decrease in net sales by 12% to $91.1 million compared to the previous year, with municipal water sales down by 9%. Despite the sales decline, cost control measures helped maintain net earnings at $9.5 million, with diluted EPS of $0.33. The company generated $21.7 million in cash from operations and ended the quarter with $85.2 million in cash reserves.

  • Net sales were $91.1 million, a 12% decrease compared to the prior year quarter.
  • Municipal water sales declined by 9% year-over-year.
  • Net earnings were $9.5 million, with diluted EPS of $0.33.
  • Cash provided by operations was $21.7 million, and the company ended the quarter with $85.2 million in cash.

Headline financials

Total Revenue

$91.1M

Previous: $104M-12.0%
EPS (adj)

$0.33

Previous: $0.39-15.4%
Operating Margin

13.9%

Previous: 14.5%-4.1%
Gross Profit Margin

39.3%

Previous: 38.9%+1.0%
Capital Expenditures

-$3.58M

Previous: -$4.47M+19.9%
Free Cash Flow

$5.96M

Previous: $6.89M-13.6%
Net Income

$9.53M

Previous: $11.4M-16.1%
Operating Income

$12.7M

Previous: $15M-15.8%
Gross Profit

$35.9M

Previous: $40.3M-11.0%
Cash & Equivalents

$85.2M

Previous: $23.9M+256.6%
Total Assets

$440M

Previous: $405M+8.6%
Stock-Based Comp

$398K

Previous: $289K+37.7%

Revenue & EPS history

Badger Meter · Revenue · Quarterly

$91.1M

Q2 2020-12%vs Q2 2019
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 remains optimistic about long-term growth opportunities but is cognizant of potential disruptions from the coronavirus pandemic, which may impact demand, supply chain, manufacturing output, and municipal budgets. The company will remain focused on managing cash flow, working capital, and pursuing strategic acquisitions.

Tailwinds

  • Backlog and bid funnel remain healthy.
  • Interest in solutions is strong.
  • New product offerings, including E-Series Ultrasonic Plus with integrated valve, have been launched.
  • Operations teams are adapting manufacturing processes to increase output while optimizing safety.
  • Cash flow and working capital are being managed effectively, with $85.2 million in cash on the balance sheet.

Headwinds

  • Potential for a protracted recovery due to coronavirus-related disruption and uncertainty.
  • Possible negative impacts on demand.
  • Potential disruptions to the supply chain.
  • Potential disruptions to manufacturing output.
  • Potential challenges for municipal budgets moving forward.

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 Q2 2020

Historical avgQ2 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro