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.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.