Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Badger Meter (BMI -0.81%) have soared today by as much as 16% after the company reported fiscal-third-quarter earnings.
So what: Revenue jumped by 25% to $87.1 million, well ahead of the consensus estimate that was calling for just $80.5 million. A similar story played out with the bottom line, as the company posted diluted earnings per share of $0.62, trouncing the $0.48 per share that the market was expecting.
Now what: Some of the revenue gains were attributed to the addition of Racine Federated, combined with strong sales of its municipal water products. Cost reductions and a growing top line spelled out significantly improved margins, according to CEO Richard Meeusen, with operating earnings increasing 77%. The company hopes to ride some of this momentum into the fourth quarter, even though it's typically a seasonally slower one.
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