Badger Meter, Inc.
) is slated to report its third-quarter fiscal 2012 results on
October 17, 2012. The Zacks Consensus Estimate for the quarter is
47 cents, a 2% increase from the year-ago quarter EPS of 46 cents
but down 10% from 52 cents reported in the second quarter of 2012.
The Zacks Consensus Estimate for revenue currently stands at $81
million, estimating an annual growth of 16%.
Second Quarter Synopsis
The company, in the second quarter of 2012, reported EPS of 52
cents, flat with the year-ago quarter but fell short of the Zacks
Consensus Estimate of 54 cents.
Total revenue improved 9% on a year-over-year basis to $82 million
in the quarter, missing the Zacks Consensus Estimate of $86
million. The acquisition of Racine Federated, Inc., contributed to
the sales while lower sales of ORION radio transmitters for natural
gas meters due to the completion of a large contract in 2011 was a
Estimate Revision Trend
Out of five estimates available for the stock, there has been no
revision for the third quarter in the last 7 days and in the last
30 days. Similarly, there has been no revision in the fiscal 2012
estimate in the past 7 days as well as in the past 30 days. The
lack of estimate revisions indicates the absence of any major
catalyst driving the quarterly results.
The Zacks Consensus Estimates inched down by a penny to 47 cents in
the past 30 days for the third quarter and remained unchanged for
fiscal 2012 over the last 30 days. Following the second quarter
results, the Zacks Consensus Estimate estimates have gone down by 3
cents to 48 cents for the third quarter and by 8 cents to $1.97 for
Earnings Surprise History
With respect to earnings surprise, Badger Meter Building has topped
the Zacks Consensus Estimate in one of the last four quarters. The
company delivered an average positive earnings surprise of 0.05%
over the preceding four quarters, implying that it has beaten the
Zacks Consensus Estimate by the same magnitude.
The acquisition of Racine Federation, along with previously
acquired Cox Flow Measurement and Remag, is expected to boost the
flow measurement business globally. The acquisitions broadened the
product range and customer base for Badger Meter.
It also has opened the door to future expansion in the global
arena. Furthermore, Racine Federated's products carry slightly
higher margins and thus will contribute to margin expansion for
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The company will continue to benefit from the customers preference
for the cost effective automatic meter reading (AMR) technology as
well as growing interest in advanced metering analytics (AMA).
However, the ongoing global economic weakness along with the
uncertain municipal financial capabilities may affect the
performance of Badger Meter moving forward.
Headquartered in Milwaukee, Wisconsin, Badger Meter provides liquid
flow measurement products and control technologies serving water
and gas utilities, municipalities and industrial customers
worldwide. The company's products, which are developed both
internally and in collaboration with other technology companies,
are used in a wide variety of applications, including water, oil
and chemicals. Badger Meter competes with
). The company retains a short-term Zacks #2 Rank (Buy).