Water sensor maker Badger Meter's Q3 sales miss analyst estimates

By Reuters News


Overview

  • US water technology firm's Q3 sales were flat yr/yr and missed analyst expectations

  • Adjusted EPS for Q3 rose 4% yr/yr

  • Company repurchased $55 mln of shares and raised annual dividend by 10%


Outlook

  • Company expects sequential and year-over-year Base revenue improvement in Q4 2026

  • Company aims to sustain growth momentum into 2027

  • Company remains focused on cost management amid ongoing material cost pressures


Result Drivers

  • UTILITY WATER SALES - Co said flat yr/yr utility water sales reflected uneven AMI project pacing, partially offset by higher software revenue

  • FLOW INSTRUMENTATION DEMAND - Co said flow instrumentation product sales rose 2% yr/yr due to strong demand across water-focused end markets

  • MARGIN IMPROVEMENT - Co attributed higher gross and operating margins to increased sales and structural mix benefits


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Miss

$235.94 mln

$240.42 mln (8 Analysts)

Q3 EPS

$1.24

Q3 Net Income

$35.90 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "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 $161.87, about 22.8% above its October 21 closing price of $131.86

  • The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 31 three months ago


Reuters Recommended Reads

  • Oct 22 - Dover Q3 revenue rises 8%, slightly beats estimates

  • Oct 22 - Snap-on Q3 sales and EPS miss expectations on diesel price impact

  • Oct 19 - Steel Dynamics' Q3 EPS misses estimates as aluminum volumes decelerate


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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