NYSE$BMI

Badger Meter Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Badger Meter achieved record sales and strong earnings, driven by robust order pace and contributions from water quality acquisitions.

Badger Meter reported a 35% increase in total sales, reaching a record $122.9 million, and diluted earnings per share increased by 45% to $0.48. The company benefited from strong order activity, recent acquisitions, and value-based pricing, though component availability and logistics challenges persisted.

  • Total sales increased 35% to a record $122.9 million.
  • Diluted earnings per share (EPS) increased 45% to $0.48.
  • Utility water sales increased 38% year-over-year.
  • Operating margins increased 130 basis points to 15.2%.

Headline financials

Total Revenue

$123M

Previous: $91.1M+34.8%
EPS (adj)

$0.48

Previous: $0.33+45.5%
Operating Margin

15.2%

Previous: 13.9%+9.4%
Capital Expenditures

-$4.38M

Previous: -$3.58M-22.3%
Free Cash Flow

$9.59M

Previous: $5.96M+61.1%
Net Income

$14M

Previous: $9.53M+46.5%
Operating Income

$18.7M

Previous: $12.7M+47.5%
Gross Profit

$50.1M

Previous: $35.9M+39.8%
Cash & Equivalents

$57.4M

Previous: $85.2M-32.7%
Total Assets

$499M

Previous: $440M+13.5%
Stock-Based Comp

$573K

Previous: $398K+44.0%

Revenue & EPS history

Badger Meter · Revenue · Quarterly

$123M

Q2 2021+34.8%vs Q2 2020
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 component shortages, allocations, and lengthened lead times will persist at least through the remainder of the year. The company remains focused on converting its robust order book, opportunity pipeline and existing record backlog into sales as we continue to navigate the broad-based waves of component shortages, allocations and lengthened lead times that we anticipate will persist at least through the remainder of the year.

Tailwinds

  • Expanding portfolio of end-to-end smart water offerings
  • Sustained high order level
  • Generating strong profitability amidst challenging price/cost environment
  • Advancing acquisition integration and execution of related growth strategies
  • Strong cash flow and credit availability

Headwinds

  • Component shortages
  • Allocations
  • Lengthened lead times
  • Challenging price/cost environment
  • Sporadic supply chain disruptions

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 2021

Historical avgQ2 2021

+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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