Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Badger Meter (NYS: BMI) saw heavy selling pressure today, down by as much as 10%, a day after the company reported third-quarter earnings that missed consensus estimates.
So what: Last night, Badger Meter put up revenue of $69.7 million, which turned into $0.46 earnings per share, both of which fell short of estimates of $76.7 million in revenue and $0.55 in earnings per share. Weak demand in the municipal market weighed on the results amid a tough macroeconomic environment.
Now what: Badger Meter CEO Richard Meeusen said, "Our third-quarter sales were affected by a continued slowdown in spending and new projects by a number of customers in the municipal water market." The softness began early in the year, and economic concerns have weighed on customers' decision-making. This morning, Canaccord Genuity was defending the company, saying that despite the slowness, the stock is still a buy, citing a strong balance sheet.
Interested in more info on Badger Meter? Add it to yourwatchlist.
At the time thisarticle was published Fool contributorEvan Niuholds no position in any company mentioned. Check out hisholdings and a short bio. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.