NYSE$BMI

Badger Meter Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Badger Meter reported record sales and EPS, driven by strong demand for smart water solutions and effective execution.

Badger Meter reported record third-quarter results, with sales increasing by 15% and EPS rising by 13%. The company's performance was driven by strong demand for its innovative product and software offerings, as well as its ability to navigate ongoing supply chain and inflation challenges. The company is well-positioned to continue its track record of profitable growth.

  • Record total sales of $148.0 million, 15% higher than the prior year’s $128.7 million.
  • Operating profit increased 23% with operating profit margins expanding 100 basis points year-over-year.
  • Diluted earnings per share (EPS) increased 13% to $0.61, up from $0.54 in the comparable prior year period.
  • Strong cash flow with $23.8 million in net cash provided by operations.

Headline financials

Total Revenue

$148M

Previous: $129M+15.0%
EPS (adj)

$0.61

Previous: $0.54+13.0%
Operating Margin

16.1%

Previous: 15.1%+6.6%
Capital Expenditures

-$4.69M

Previous: -$8.17M+42.6%
Free Cash Flow

$13.2M

Previous: $7.69M+72.3%
Net Income

$17.9M

Previous: $15.9M+13.1%
Operating Income

$23.9M

Previous: $19.4M+22.8%
Gross Profit

$57.5M

Previous: $51.2M+12.4%
Cash & Equivalents

$115M

Previous: $67M+71.2%
Total Assets

$574M

Previous: $519M+10.7%
Stock-Based Comp

$704K

Previous: $590K+19.3%

Revenue & EPS history

Badger Meter · Revenue · Quarterly

$148M

Q3 2022+15%vs Q3 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

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

  • Municipal Water
    $8M

Forward guidance

The demand environment remains robust, and the company is well-positioned to continue its track record of profitable growth.

Tailwinds

  • Customers continue to adopt digital smart water solutions.
  • Broad ‘choice-matters’ water quality and quantity offerings continue to illustrate the benefits of our differentiated, flexible and comprehensive smart water AMI solutions.
  • Commercial excellence, combined with nimble execution have demonstrated our ability to navigate persistent macro challenges and drive outperformance.
  • Strong order pace and bid funnel are supportive of revenue growth and margin expansion throughout economic cycles.
  • Robust cash flow and ample credit availability provide financial flexibility.

Headwinds

  • Ongoing supply chain challenges.
  • Inflation challenges.
  • Macro challenges.
  • Unprecedented inflationary environment.
  • Possible negative impacts of COVID-19 on the global economy, the Company’s operations and those of our customers and suppliers.

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 2022

Historical avgQ3 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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