Badger Meter (BMI) to Post Q2 Earnings: Key Factors to Note

Core Insights - The Zacks Consensus Estimate for Badger Meter, Inc. (BMI) revenues is $200.9 million, indicating a growth of 14.23% year-over-year, while the earnings estimate is 98 cents per share, reflecting a 29% increase from the previous year [1][3]. Group 1: Company Performance - BMI's revenue growth is attributed to rising demand for innovative smart water solutions, including E-Series ultrasonic meters, ORION Cellular endpoints, and BEACON Software-as-a-Service, with utility water sales increasing by 29% in the last reported quarter [3]. - The introduction of the BlueEdge solution in May 2024 is expected to contribute positively to top-line expansion [12]. - Synergies from acquisitions, particularly the remote water monitoring solutions from Trimble, are likely to have favorably impacted BMI's top-line results [13]. Group 2: Market Conditions - The company faces challenges from a volatile global macroeconomic environment, foreign exchange fluctuations, and intensified competition, which may have negatively affected its second-quarter performance [5]. - Rising expenses are anticipated to exert pressure on BMI's profit margins [5]. Group 3: Earnings Predictions - BMI is predicted to beat earnings estimates based on a positive Earnings ESP and a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [6][18]. - The company has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 12.7% [11].