Badger Meter, Inc. Just Recorded A 26% EPS Beat: Here's What Analysts Are Forecasting Next

It's been a pretty great week for Badger Meter, Inc. (NYSE:BMI) shareholders, with its shares surging 10% to US$202 in the week since its latest first-quarter results. It looks like a credible result overall - although revenues of US$222m were what the analysts expected, Badger Meter surprised by delivering a (statutory) profit of US$1.30 per share, an impressive 26% above what was forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

We've discovered 1 warning sign about Badger Meter. View them for free.

After the latest results, the eight analysts covering Badger Meter are now predicting revenues of US$922.4m in 2025. If met, this would reflect a decent 8.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 6.2% to US$4.84. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$927.7m and earnings per share (EPS) of US$4.58 in 2025. So the consensus seems to have become somewhat more optimistic on Badger Meter's earnings potential following these results.

See our latest analysis for Badger Meter

The consensus price target was unchanged at US$223, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Badger Meter, with the most bullish analyst valuing it at US$252 and the most bearish at US$198 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Badger Meter's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Badger Meter's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.1% annually. So it's pretty clear that, while Badger Meter's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Badger Meter's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Badger Meter. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Badger Meter going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for Badger Meter you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.