Badger Meter Gears Up to Report Q1 Earnings: What's in the Offing?

Company Overview - Badger Meter, Inc. (BMI) is set to release its first-quarter 2025 earnings report on April 17, with revenue estimates at $221.8 million, reflecting a 13% growth year-over-year, and earnings per share (EPS) estimated at $1.08, indicating a 9.1% increase from the previous year [1][2] Earnings Performance - BMI has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 9.9% [2] Demand Drivers - Continued demand for BMI's smart water solutions, including mechanical and E-Series Ultrasonic meters, ORION Cellular endpoints, and BEACON Software-as-a-Service, is expected to drive revenue growth [2] - Secular trends in the water industry, such as regulatory pressures, aging infrastructure, and climate-related events, are increasing the adoption of smart water technologies, benefiting BMI's offerings [3] Utility Segment Growth - The uptake of the BlueEdge platform is anticipated to contribute to revenue growth in the utility segment, with utility water sales expected to reach $196 million compared to $170 million in the same quarter last year [4] Margin Expectations - Higher volumes, a favorable sales mix, and effective price/cost management are projected to enhance gross margin performance in the upcoming quarter [5] Sales Growth Outlook - Management has indicated expectations of high single-digit sales growth rates moving forward, influenced by tougher year-over-year comparisons and normalizing demand trends [6] Segment Performance - Sales from the flow instrumentation segment are expected to be $27 million, slightly up from $26.2 million reported in the prior year quarter, despite some declines in certain de-emphasized markets [6] Cost and Competition Concerns - Increased expenses due to growth investments and an uncertain global macroeconomic environment, along with intensified competition, are noted as concerns [7] Earnings Prediction Model - Current models do not predict an earnings beat for BMI, with an Earnings ESP of -1.71% and a Zacks Rank of 2 (Buy) [8]