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Dec 31, 2019
Badger Meter Q4 2019 Earnings Report
Badger Meter reported a 3% increase in net sales and an EPS of $0.42 for Q4 2019.
Key Takeaways
Badger Meter reported a solid finish to 2019 with a 3% increase in net sales for the fourth quarter, driven by strong growth in domestic municipal water revenue. The company's operating margins improved, and cash flow remained strong, reflecting positive product sales mix and continuous improvement activities.
Net sales for Q4 2019 increased by 3% to $107.6 million compared to the prior year.
Municipal water sales increased 8% year-over-year.
GAAP EPS was $0.42, up from $0.39 in the comparable prior year period.
Operating margins were 15.2% in Q4 2019, compared to an adjusted 14.6% in the prior year period.
Badger Meter
Badger Meter
Badger Meter Revenue by Segment
Revenue by Segment
Utility Water Revenue
CapyFin.com Forward Guidance
As we move into 2020, municipal water spending remains healthy and we continue to experience favorable feedback from installation and pilot testing of our leading technologies. We have several new products that will be launching, including the next generation of our residential ultrasonic meters and our flow restriction meter.
Positive Outlook
- Municipal water spending remains healthy.
- Favorable feedback from installation and pilot testing of leading technologies.
- Several new products will be launching.
- Profit margins should continue to benefit from positive product and software sales mix.
- Extensive available capital to deploy on internal research and development and disciplined, strategic acquisitions with an active funnel of opportunities.
Challenges Ahead
- Modest potential headwind from higher brass costs.
- General economic conditions
- Variation in demand from customers
- Continued market acceptance of new products
- Supply chain risk, material and labor cost increases, tax reform and foreign currency risk.