Badger Meter Q4 revenue up 8% but misses estimates

Overview

• Water management solutions firm's Q4 revenue rose 8% yr/yr but missed analyst expectations

• Diluted EPS for Q4 increased 10% yr/yr to $1.14

• Company selected for major AMI project in Puerto Rico

Outlook

• Badger Meter expects high single-digit sales growth over a five-year horizon

Result Drivers

• SMART WATER SOLUTIONS - Growth driven by increased sales of digital smart water solutions, including ultrasonic meters and cellular AMI

• SMARTCOVER CONTRIBUTION - SmartCover acquisition contributed to sales growth and improved profitability

• GROSS MARGIN IMPROVEMENT - Favorable sales mix and cost management enhanced gross margins

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Badger Meter Inc is $212.50, about 29.3% above its January 27 closing price of $164.41

• The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 34 three months ago

Press Release: ID:nBw1hh9QCa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)