NYSE$BMI

Badger Meter Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Badger Meter reported record sales and earnings amidst supply chain challenges.

Badger Meter reported a record third quarter with a 13.3% increase in total sales, reaching $128.7 million, and diluted earnings per share of $0.54, driven by strong demand and strategic actions to mitigate supply chain disruptions and inflationary pressures.

  • Total sales increased 13.3% to a record $128.7 million.
  • Diluted earnings per share were a record $0.54.
  • The company announced the 29th consecutive increase in the annual dividend rate.
  • The company had a solid cash flow from operations of $17.7 million.

Headline financials

Total Revenue

$129M

Previous: $114M+13.3%
EPS (adj)

$0.54

Previous: $0.51+5.9%
Operating Margin

15.1%

Previous: 17.2%-12.2%
Capital Expenditures

-$8.17M

Previous: -$5.86M-39.5%
Free Cash Flow

$7.69M

Previous: $9.01M-14.7%
Net Income

$15.9M

Previous: $14.9M+6.7%
Operating Income

$19.4M

Previous: $19.5M-0.4%
Gross Profit

$51.2M

Previous: $45M+13.7%
Cash & Equivalents

$67M

Previous: $93.9M-28.6%
Total Assets

$519M

Previous: $449M+15.7%
Stock-Based Comp

$590K

Previous: $336K+75.6%

Revenue & EPS history

Badger Meter · Revenue · Quarterly

$129M

Q3 2021+13.3%vs Q3 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

The company anticipates component shortages and lengthened lead times will ease over time, but assume they will persist well into 2022, while remaining focused on developing digital solutions and executing capital allocation priorities.

Tailwinds

  • Capitalizing on strong demand for hardware, communication and digital solutions.
  • Converting record order backlog to net sales by mitigating supply shortages and delays.
  • Developing digital solutions to broaden competitive advantages.
  • Integrating water quality monitoring offerings and executing related digital growth strategies.
  • Strong cash flow and credit availability provide ample financial flexibility.

Headwinds

  • Component shortages and lengthened lead times are expected to persist well into 2022.
  • Ongoing electronic and other component delays.
  • Increasing inflationary cost pressures across the business.
  • Supply chain complexities.
  • Impact of various macroeconomic challenges.

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 Q3 2021

Historical avgQ3 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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