What Happened?
Shares of water control and measure company Badger Meter (NYSE: BMI) jumped 7% in the morning session after the company reported impressive first quarter 2025 results which exceeded analysts' revenue and EPS estimates. Sales rose 13% year-on-year, fueled primarily by a 16% gain in utility water sales. Margins also expanded meaningfully due to a more favorable product and customer mix. While the company did not issue formal guidance, management acknowledged that the second quarter would face tougher comparisons, yet reaffirmed confidence in long-term growth. Overall, we think this was a solid quarter with some key areas of upside.
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What The Market Is Telling Us
Badger Meter’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Badger Meter is down 4.9% since the beginning of the year, and at $201.22 per share, it is trading 15.3% below its 52-week high of $237.67 from December 2024. Investors who bought $1,000 worth of Badger Meter’s shares 5 years ago would now be looking at an investment worth $3,432.
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