Badger Meter, Inc (NYSE:BMI) reported third-quarter FY23 sales growth of 26% year-on-year to $186.2 million, beating the consensus of $179.1 million.
EPS of $0.88 beat the consensus of $0.81.
Utility water sales increased 31% Y/Y with solid growth across the broad suite of digital smart water solutions, including robust adoption of cellular AMI solutions, higher ORION Cellular endpoint and BEACON Software as a Service (SaaS) revenues, as well as increased meter volumes, notably E-Series Ultrasonic meters. The continued normalization of supply chain conditions and the addition of Syrinix also contributed to the year-over-year sales increase.
Sales of flow instrumentation products rose 2% Y/Y.
The gross margin increased by 20 basis points to 39.1%, benefiting from higher volumes and structural positive sales mix trends.
The operating margin improved 80 basis points to 16.9%.
The company held $162.9 million in cash and equivalents and generated $31.4 million in operating cash flow.
“Our third quarter results once again demonstrated the value of our differentiated smart water solution offerings and strength of our execution, yielding 26% sales growth and record EPS in the quarter,” said Kenneth C. Bockhorst, Chairman, President and Chief Executive Officer.
Price Action: BMI shares were up 6.73% at $143.86 during early morning trading on Thursday.
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