Financial Wire

Badger Meter Posts Underwhelming Q1 Miss Amid Revenue Air Pocket, RBC Says

-- Badger Meter (BMI) posted an "underwhelming" Q1 operating miss amid unfavorable project timing and a slower book-and-ship business, RBC Capital Markets said in a note emailed Monday.

RBC noted that revenue dropped 9% year on year, which missed consensus estimates for 3% growth, while management decreased full-year organic outlook from below its long-term high single digit percent target to flat year on year, and Q2 is seen declining.

The phasing out of four large Advanced Metering Infrastructure, or AMI, deployments coincided with a backlog of nine projects that will not ship until the second half, which created a "revenue air pocket" in the first half that is masking long-term strength, the note said.

The investment firm said, however, that "seven of [the] nine large projects in backlog represent share gains, with customers moving from competitor products to Badger's cellular AMI."

RBC lowered its 2026 EPS estimate by $0.45 to $4.65. It kept its outperform rating on Badger Meter but cut the company's price target to $169 from $197.

Price: $116.51, Change: $+0.97, Percent Change: +0.84%

Related Articles

US Markets

Wingstop Likely to Miss First-Quarter Same-Store Sales Views Amid Macro Pressures, RBC Says

Wingstop's (WING) fiscal first-quarter same-store sales are expected to miss Wall Street's estimates amid a tough macro environment, prompting the company to lower its full-year outlook for the metric, RBC Capital Markets said in a note e-mailed Monday.The brokerage projects the restaurant chain's first-quarter same-store sales to drop 6.8%, while the Street is looking for a 5.2% decline, according to RBC."We model (a first-quarter same-store sales) miss as macro pressures continued to weigh on (Wingstop's) core consumer and weather was likely (more than a 100-basis-point) headwind in the quarter," RBC analyst Logan Reich said in a note to clients.The company is scheduled to report results April 29."Given elevated macro uncertainty and (Wingstop) over-indexing to lower-income consumers, we anticipate a modest guide down from the (company's) flat (to low-single-digit full-year same-store sales) outlook," Reich said. "However, given best-in-class franchisee returns on capital, we don't believe there's elevated potential for a unit growth guide down, despite recently challenged (same-store sales) growth.RBC reduced its 2026 and 2027 same-store sales projections for Wingstop."(Full-year) comps were always expected to be back-half weighted, but a potential (high-single-digit) decline in (the first quarter) on an easier compare implies material contribution from the loyalty program launch at the end of (the second quarter) and faster prep times translating to faster all-in delivery speed are required," the analyst said.The brokerage lowered its price target on the Wingstop stock to $275 from $340, with an outperform rating.The company's shares were down 1.2% in Monday afternoon trade, bringing its year-to-date losses to 19%.Wingstop's customer base leans heavily toward lower-income demographics that are more sensitive to increases in gas prices, making the brand more vulnerable to macroeconomic shifts, according to the note.Energy prices have surged following the US-Israel war with Iran that started at the end of February amid the closure of the Strait of Hormuz, the world's most important chokepoint for crude flows.Price: $192.79, Change: $-3.56, Percent Change: -1.81%

$WING
Australia

CMS Energy Keeps Quarterly Dividend at $0.57 a Share, Payable May 29 to Shareholders of Record as of May 8

Price: $78.00, Change: $+0.25, Percent Change: +0.32%

$CMS
Commodities

Jadestone Secures Gas Sales Agreement for Vietnam Fields, Eyes 2028 Production

Jadestone Energy said Monday that it signed a gas sales deal for its Vietnam fields, targeting output of 80 million standard cubic feet per day with production expected to begin in late 2028.The agreement covers gas supply from the Nam Du and U Minh discoveries offshore southwest Vietnam, the company said.The deal aligns with the development plan approved on March 18, 2026, with first production targeted in late 2028, it added.Under the deal, gas will be sold to PV Gas, a unit of state-owned Petrovietnam, under defined supply and pricing terms, Jadestone said.The contract sets a daily supply level of 80 MMscf/d, with flexibility up to 110% and a take-or-pay clause covering 90% of volumes, the company added.Pricing is linked to historical Vietnam gas import levels, with annual escalation built into the agreement, ensuring predictable revenue over time, Jadestone said.The fields hold about 32 million barrels of oil equivalent in proven and probable reserves, supporting long-term production potential, the company noted.Jadestone also sees upside from nearby prospects, estimating up to 1.5 trillion cubic feet of additional gas that could extend plateau output and enhance project value, the company said.Chief Executive Officer T. Mitch Little said the agreement marks a key milestone for Jadestone, enabling progress toward project execution, with a focus on contract awards, while supporting Vietnam's energy security, economic growth, and long-term emissions goals.