- Badger Meter, Inc BMI reported second-quarter FY22 sales growth of 12% year-on-year to $137.8 million, beating the consensus of $133.1 million.
- Utility water sales increased 14% Y/Y. Sales growth was most notable in ultrasonic meters, ORION Cellular endpoints, and BEACON SaaS revenue. Sales of flow instrumentation products rose 4% Y/Y.
- The gross margin contracted 110 basis points to 39.7% due to inflationary pressures and production volatility caused by intermittent component delays.
- The operating margin improved 80 basis points to 16%.
- EPS of $0.57 beat the consensus of $0.51.
- It held $100.2 million in cash and equivalents and generated $19.7 million in operating cash flow.
- "Record sales for the second quarter were the result of continued strong customer demand, effective supply chain management, and continued price realization. Operating margins improved year-over-year despite persistent cost inflation, and we continued to experience robust orders, and correspondingly, a further expansion of our already record-high backlog," Chair and CEO Kenneth C. Bockhorst said.
- Price Action: BMI shares traded higher by 2.14% at $84.46 on the last check Wednesday.
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