Badger Meter, Inc. BMI is slated to release its fourth-quarter 2024 earnings report on Jan. 31, before market open.

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The Zacks Consensus Estimate for revenues is pegged at $198.9 million, which implies growth of 9% from the year-ago reported number. The consensus mark for earnings is pegged at $1.01 per share, indicating a year-over-year increase of 20.2%. In the past 60 days, analysts have increased their earnings estimates for the current quarter by 1 cent.  

The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 10.4%.

Factors at Play Ahead of BMI’s Q4 Earnings Release

Continued demand for BMI’s innovative smart water solutions, including higher uptake of meters (both mechanical and E-Series Ultrasonic), ORION Cellular endpoints and associated BEACON Software-as-a-Service revenues, is likely to have driven its top line. 

The dynamics of secular trends in the water industry have been driving the demand for cutting-edge digital water solutions. Apart from macroeconomic drivers within the water industry, BMI has been witnessing a strong opportunity funnel, bid pipeline and order book rates.

The introduction of the BlueEdge platform in May 2024 is likely to have aided top-line expansion. BlueEdge framework has been designed to simplify its comprehensive suite of scalable water solutions. This platform is an umbrella term that combines water technology, software and services to enhance customer experience with efficient water management.

In the last reported quarter, utility water sales rose 14%, due to continued robust adoption across the BlueEdge suite of solutions by utility customers.

Badger Meter, Inc. Price and EPS Surprise

Badger Meter, Inc. price-eps-surprise | Badger Meter, Inc. Quote

Badger Meter has been continuously prioritizing and enhancing its presence in selected regional markets outside the United States that offer healthy growth potential. The company is likely to have benefited by expanding its market share in water-related applications.

On the last earnings call, management sounded cautious regarding fewer operating days in the fourth quarter owing to the holiday season. Moreover, hurricane-related recovery activities could temporarily delay certain utility projects in the Southeastern U.S. in the near term. However, BMI added that it is too early to quantify the impact. Due to tougher year-over-year comparison as well as strong but normalizing demand trends, BMI noted that it now expects to deliver high single-digit sales growth rates going ahead.

Higher expenses owing to incremental growth investments are an added concern along with an uncertain global macroeconomic backdrop, forex volatility and intensified competition.

What Does Our Model Say About BMI?

Our proven model does not predict an earnings beat for BMI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here, as you can see below.

BMI has an Earnings ESP of -0.78% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are three stocks you may want to consider, as our model shows that these have the right elements to post an earnings beat in this reporting cycle.

V.F. Corporation VFC currently has an Earnings ESP of +4.30% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here. 

VFC is scheduled to report quarterly earnings on Jan. 29. The Zacks Consensus Estimate for VFC’s to-be-reported quarter’s earnings and revenues is pegged at 34 cents per share and $2.75 billion, respectively. Shares of VFC have gained 48.6% in the past year.

Deckers Outdoor Corporation DECK presently has an Earnings ESP of +6.84% and a Zacks Rank #1. DECK is scheduled to report quarterly numbers on Jan. 30. The Zacks Consensus Estimate for DECK’s to-be-reported quarter’s earnings and revenues is pegged at $2.56 per share and $1.7 billion, respectively. Shares of DECK have risen 64.1% in the past year.

ServiceNow, Inc. NOW has an Earnings ESP of +0.91% and a Zacks Rank #2 at present. NOW is scheduled to report quarterly figures on Jan. 29. The Zacks Consensus Estimate for NOW’s to-be-reported quarter’s earnings and revenues is pegged at $3.58 per share and $2.95 billion, respectively. Shares of NOW have increased 45.1% in the past year.

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Badger Meter, Inc. (BMI) : Free Stock Analysis Report

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