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What: Shares of Badger Meter (NYSE: BMI ) saw heavy selling pressure today, down by as much as 10%, a day after the company reported third-quarter earnings that missed consensus estimates.
So what: Last night, Badger Meter put up revenue of $69.7 million, which turned into $0.46 earnings per share, both of which fell short of estimates of $76.7 million in revenue and $0.55 in earnings per share. Weak demand in the municipal market weighed on the results amid a tough macroeconomic environment.
Now what: Badger Meter CEO Richard Meeusen said, "Our third-quarter sales were affected by a continued slowdown in spending and new projects by a number of customers in the municipal water market." The softness began early in the year, and economic concerns have weighed on customers' decision-making. This morning, Canaccord Genuity was defending the company, saying that despite the slowness, the stock is still a buy, citing a strong balance sheet.
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