NYSE$BMI

Badger Meter Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Badger Meter reported a 3% increase in net sales and an EPS of $0.42 for Q4 2019.

Badger Meter reported a solid finish to 2019 with a 3% increase in net sales for the fourth quarter, driven by strong growth in domestic municipal water revenue. The company's operating margins improved, and cash flow remained strong, reflecting positive product sales mix and continuous improvement activities.

  • Net sales for Q4 2019 increased by 3% to $107.6 million compared to the prior year.
  • Municipal water sales increased 8% year-over-year.
  • GAAP EPS was $0.42, up from $0.39 in the comparable prior year period.
  • Operating margins were 15.2% in Q4 2019, compared to an adjusted 14.6% in the prior year period.

Headline financials

Total Revenue

$108M

Previous: $104M+3.0%
EPS (adj)

$0.42

Previous: $0.40+5.0%
Operating Margin

15.2%

Previous: 14.6%+4.1%
Gross Profit Margin

38.2%

No prior period
Income Tax Rate

24.3%

Previous: 23.0%+5.7%
Capital Expenditures

$1.91M

Previous: $1.42M+33.9%
Free Cash Flow

$17.7M

Previous: $19M-7.2%
Net Income

$12.3M

Previous: $11.2M+9.2%
Operating Income

$16.3M

Previous: $14.8M+10.4%
Gross Profit

$41.1M

Previous: $40.2M+2.4%
Cash & Equivalents

$48.9M

Previous: $13.1M+273.5%
Total Assets

$422M

Previous: $393M+7.4%
Stock-Based Comp

$332K

Previous: $800K-58.5%

Revenue & EPS history

Badger Meter · Revenue · Quarterly

$108M

Q4 2019+3%vs Q4 2018
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

As we move into 2020, municipal water spending remains healthy and we continue to experience favorable feedback from installation and pilot testing of our leading technologies. We have several new products that will be launching, including the next generation of our residential ultrasonic meters and our flow restriction meter.

Tailwinds

  • Municipal water spending remains healthy.
  • Favorable feedback from installation and pilot testing of leading technologies.
  • Several new products will be launching.
  • Profit margins should continue to benefit from positive product and software sales mix.
  • Extensive available capital to deploy on internal research and development and disciplined, strategic acquisitions with an active funnel of opportunities.

Headwinds

  • Modest potential headwind from higher brass costs.
  • General economic conditions
  • Variation in demand from customers
  • Continued market acceptance of new products
  • Supply chain risk, material and labor cost increases, tax reform and foreign currency 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 Q4 2019

Historical avgQ4 2019

+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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