From Nasdaq.: 2024-06-20 08:42:00

Itron Inc’s ITRI shares have gained 36.1% year-to-date, outperforming the S&P 500 composite and sub-industry. The company supplies smart meters, communication systems, and software for efficient resource management. Positive financial performance has led to earnings surpassing estimates with an average surprise of 77.9%.

Itron’s growth is driven by increased service revenues, communication module sales, and demand for its Grid Edge Intelligence platform. The recent acquisition of Elpis Squared has expanded its solutions. Bookings were $361 million with a backlog of $4.3 billion. The company expects strong performance with a book-to-bill ratio of at least 1:1 in 2024.

Itron reported non-GAAP earnings per share of $1.24, beating estimates by 45.9%. Revenues of $603 million also surpassed expectations by 4.1%. Strong demand across all segments and operational execution drove revenue growth. The company expects Q2 2024 revenue between $595-$605 million and non-GAAP EPS between 90 cents and $1.00.

The consensus estimate for ITRI’s 2024 and 2025 revenues is $2.36 billion and $2.49 billion respectively, with EPS expected to rise. However, rising operating expenses and competition pose challenges. The balance sheet shows a leveraged position with cash of $300.6 million and long-term debt of $455.4 million.

Better-ranked stocks in the technology space include Alphabet, Arista Networks, and Woodward. These companies have seen positive earnings estimates revisions and strong performance. Alphabet and Arista Networks have a Zacks Rank #1, while Itron holds a Zacks Rank #3. Analysts remain optimistic about ITRI’s long-term earnings growth rate of 26%.



Read more at Nasdaq.: Itron (ITRI) Stock Soars 36.1% YTD: Will the Rally Continue?