Demo
BMI NYSE· Badger Meter Inc
FundamentalsNews digest Peer analysis
Login
BMI NYSE· Badger Meter Inc
Earnings report Q4 2023

BMI Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, BMI reported net sales of $182.44 million. The company's revenue showed consistent growth throughout the year, with net sales of $159.10 million, $175.86 million, and $186.19 million in the preceding quarters, respectively. The revenue growth was primarily driven by sales of utility water and flow instrumentation products, including flow meters and radios, quality sensing equipment, software access, and other ancillary services. Sales of products into the global flow instrumentation end markets were particularly strong, reaching $93.8 million, a 4.3% increase compared to the previous year. Excluding the impact of the strong US dollar, flow instrumentation sales increased by 7.1%.

Strengths

BMI demonstrated strong financial performance in the latest quarter. The company's net earnings increased steadily throughout the year, reaching $24.72 million in the fourth quarter. This growth in earnings can be attributed to higher net sales and improved gross margin. BMI's gross margin as a percentage of sales increased from 38.9% in the previous year to 39.3% in the latest quarter, indicating improved profitability. The company's management attributes the gross margin improvement to higher volumes and a favorable sales mix. Additionally, operating earnings increased to $118.0 million, or 16.8% of sales, compared to $87.3 million, or 15.4% of sales, in the previous year.

Challenges

While BMI's financial performance was strong overall, there are some challenges to consider. The company's gross margin improvement was partially offset by higher selling, engineering, and administration expenses, which accounted for 22.5% of sales in the latest quarter. This indicates that BMI may need to manage its expenses more effectively to further enhance profitability. Additionally, the company may face challenges related to supply chain dynamics, which could impact its ability to meet order demand and maintain sales growth.

Noteworthy

It is worth noting that BMI's stock price experienced significant fluctuations throughout the year. The stock reached a high of $170.86 in the third quarter but declined to $143.87 by the end of the fourth quarter. However, the stock price rebounded to $154.37 at the close of the quarter. These fluctuations may be influenced by various factors, including market conditions and investor sentiment.

Summary

BMI delivered a strong performance in the latest quarter, with consistent revenue growth and improved profitability. The company's net sales increased steadily throughout the year, driven by strong demand for utility water and flow instrumentation products. BMI's gross margin improved, indicating enhanced profitability, while operating earnings also showed significant growth. However, the company faces challenges related to managing expenses and supply chain dynamics. The stock price experienced fluctuations but ended the quarter on a positive note. Overall, BMI's financial performance demonstrates its ability to generate revenue and maintain profitability in a competitive market.

Source documents

Form 10-K  filed on Feb 16, 2024
111 pages scanned

Reference data

Company financials Q4 revenue 182M
Analyst estimates Q4 EPS beat by 2.37%
Sign up to Fey

Get in-depth analysis on thousands of stocks for just $30/month. Cancel anytime.