The company reported third quarter earnings of $0.27 per share, which easily missed expectations. Meanwhile, sales rose 3.8% year/year to $100 million, but fell just slightly short of expectations.
The company did say that the industry overall has experienced some softening.
But despite this softening, the company's performance has remained steady, led by significant growth in its E-Series Ultrasonic meters and ORION Cellular technology, as well as ongoing acceptance of its BEACON Advanced Metering Analytics (AMA) managed solution.
Ultimately, earnings decreased in the quarter by 9.3% when compared to the prior year's quarter.
Net earnings for the quarter were impacted by higher brass costs, as well as other costs. This resulted in a gross profit margin of 37.0% for the third quarter of 2017 compared to 40.1% in the third quarter of 2016.
The company said that several major municipal water projects initially slated for the third quarter are now expected in the future, as customers upgrade their systems to take advantage of our new ORION Cellular LTE technology.
Clearly, this helped sales fall short of expectations.
Pre-market, the stock briefly dropped down to $41.00/share and holds a low for the day of $42.00/share since the market opens. In current trade, BMI is down 14.4% at $43.48/share.