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What: Shares of Badger Meter (NYSE: BMI ) got crushed today by as much as 14% after the company reported second-quarter-earnings results.
So what: Sales came in just shy of $82 million, with earnings per share of $0.52. Both figures fell short of the market's expectations of $87 million in revenues and $0.54 per share in profit. CEO Richard Meeusen acknowledged it was hard to compare against the record levels from a year ago, since Badger Meter has since acquired Racine Federated.
Now what: The increase in revenue was primarily attributed to this acquisition, and excluding it sales were comparable with historic norms. Uncertainty remains within the municipal utility market, especially around financing capabilities. Racine Federated's contribution to the bottom line did exceed expectations and integration efforts are ongoing. During the quarter, Badger Meter also repurchased $30 million in stock.
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