Water sensor maker Badger Meter's Q3 sales miss analyst estimates

Badger Meter

Thu 13:40

Overview
US water technology firm's Q3 sales were flat yr/yr and missed analyst expectations
Adjusted EPS for Q3 rose 4% yr/yr
Company repurchased $55 mln of shares and raised annual dividend by 10%

Outlook
Company expects sequential and year-over-year Base revenue improvement in Q4 2026
Company aims to sustain growth momentum into 2027
Company remains focused on cost management amid ongoing material cost pressures

Result Drivers
UTILITY WATER SALES - Co said flat yr/yr utility water sales reflected uneven AMI project pacing, partially offset by higher software revenue
FLOW INSTRUMENTATION DEMAND - Co said flow instrumentation product sales rose 2% yr/yr due to strong demand across water-focused end markets
MARGIN IMPROVEMENT - Co attributed higher gross and operating margins to increased sales and structural mix benefits

Company press release: ID:nBw1Y2Mmpa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
$235.94 mln
$240.42 mln (8 Analysts)
Q3 EPS
 
$1.24
 
Q3 Net Income
 
$35.90 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for Badger Meter, Inc. is $161.87, about 22.8% above its October 21 closing price of $131.86
The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 31 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)