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What: Shares of Badger Meter (NYSE:BMI) 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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Evan Niu, CFA, has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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.