Badger Meter, Inc. BMIhas been experiencing growing demand for its E-Series meters and ORION cellular endpoints. Also, focus on acquisitions, rebound in the Flow Instrumentation business and benefits of the U.S. tax reform are other vital growth drivers for the company. On the other hand, elevated expenses and rising copper costs remain concerns.
This Zacks Rank #3 (Hold) company has a market capitalization of around $1.3 billion. The stock has an estimated long-term earnings growth rate of 15.3%.
Below, we briefly discuss the company’s potential growth drivers and likely headwinds.
Factors Favoring Badger Meter
Positive Earnings Surprise History
Badger Meter surpassed the Zacks Consensus Estimate in three out of the last four quarters, delivering an average positive earnings surprise of 1.02%.
Positive Estimate Revisions, Growth Projections
The Zacks Consensus Estimate for 2018 and 2019 has been revised nearly 23% and 21% upward, respectively, over the past 90 days. The Zacks Consensus Estimate for current-year earnings is pegged at $1.60, reflecting estimated year-over-year growth of 34%. The Zacks Consensus Estimate for 2019 earnings is pegged at $1.76, indicating estimated year-over-year increase of 10%.
Price Performance
The company has outperformed the industryin the last year. Its shares have rallied 30.6%, while the industry recorded growth of 24.5%.