The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Badger Meter missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Badger Meter logged revenue of $69.7 million. The seven analysts polled by S&P Capital IQ foresaw revenue of $77.3 million. Sales were 6.4% lower than the prior-year quarter's $75.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.46. The eight earnings estimates compiled by S&P Capital IQ averaged $0.55 per share on the same basis. GAAP EPS of $0.08 for Q3 were 81% lower than the prior-year quarter's $0.42 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 31.9%, 610 basis points worse than the prior-year quarter. Operating margin was 3.3%, 1,160 basis points worse than the prior-year quarter. Net margin was 2.0%, 770 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $62.5 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $264.6 million. The average EPS estimate is $1.46.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 207 members out of 224 rating the stock outperform, and 17 members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Badger Meter a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Badger Meter is hold, with an average price target of $31.17.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.