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Itron (ITRI) Earnings Top Estimates in Q1, Revenues Down Y/Y
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Itron, Inc. (ITRI - Free Report) reported adjusted earnings of 57 cents per share in first-quarter 2017, up 30% from 44 cents recorded in the year-ago quarter. Earnings also surpassed the Zacks Consensus Estimate of 51 cents by a margin of around 12%.
Including one-time items, the company reported earnings of 40 cents per share, up 54% from 26 cents witnessed in the prior-year quarter.
Total revenue decreased around 4% year over year to $478 million, but handily beat the Zacks Consensus Estimate of $454 million. Foreign currency exchange rates had an unfavorable impact of around $5 million on revenues. Improvement in the Electricity segment was offset by decline in the Gas and Water segments.
Cost of goods sold went down 4% to $320.4 million from $334.4 million recorded in the year-earlier quarter. Gross profit decreased 3.7% year over year to $157 million. Gross margin advanced 10 basis points (bps) year over year to 33%, driven by favorable product mix, primarily in the Gas segment.
Adjusted operating expenses decreased 8.8% year over year to $119.6 million. Itron posted adjusted operating income of $37.6 million compared with $32 million posted in the year-ago quarter. Operating margin expanded 150 bps to 7.9% in the quarter.
Segment Performance
Electricity Segment: Net sales at the Electricity segment climbed 9.9% year over year to $238.8 million in first-quarter 2017. The segment reported adjusted operating income of $22.7 million, up 32% from $19 million in the year-ago quarter.
Gas Segment: The segment’s sales dropped 10.8% year over year to $124 million. Adjusted operating income came in at $23.6 million, up 23% year over year.
Water Segment: The Water segment reported sales of $114.6 million, down 18.7% from $141 million recorded in the prior-year quarter. The segment reported adjusted operating profit of $10.7 million, plunging 45% from $19.3 million posted in the comparable period last year.
Financial Position
Itron had cash and cash equivalents of $187.9 million at the end of first-quarter 2017 compared with $133.6 million at the end of 2016. The company recorded cash from operations of $63.3 million in the reported quarter compared with $33.8 million recorded in the year-ago quarter.
Bookings and Backlog
Itron had bookings of $424 million in first-quarter 2017. In the reported quarter, backlog came in at $1.6 billion and the 12-month backlog totaled $819 million, up 7% and 4%, respectively, compared with first-quarter 2016.
Itron anticipates that its investment in the OpenWay Riva IoT solution and differentiated software and services offerings, combined with ongoing operational discipline, will drive financial results.
Share Price Performance
In the past one year, Itron has unperformed the Zacks categorized Electronics Testing Equipment sub-industry. The company’s shares have gained around 51% compared with nearly 53.5% growth recorded by the industry.
APPLIED OPTOELECTRONICS has a remarkable positive average earnings surprise of 116.49% for the last four quarters. Teradyne generated a positive average earnings surprise of 25.10% over the trailing four quarters. Axcelis Technologies has delivered an impressive average positive earnings surprise of 151.25% in the past four quarters.
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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Itron (ITRI) Earnings Top Estimates in Q1, Revenues Down Y/Y
Itron, Inc. (ITRI - Free Report) reported adjusted earnings of 57 cents per share in first-quarter 2017, up 30% from 44 cents recorded in the year-ago quarter. Earnings also surpassed the Zacks Consensus Estimate of 51 cents by a margin of around 12%.
Including one-time items, the company reported earnings of 40 cents per share, up 54% from 26 cents witnessed in the prior-year quarter.
Total revenue decreased around 4% year over year to $478 million, but handily beat the Zacks Consensus Estimate of $454 million. Foreign currency exchange rates had an unfavorable impact of around $5 million on revenues. Improvement in the Electricity segment was offset by decline in the Gas and Water segments.
Itron, Inc. Price, Consensus and EPS Surprise
Itron, Inc. Price, Consensus and EPS Surprise | Itron, Inc. Quote
Cost of goods sold went down 4% to $320.4 million from $334.4 million recorded in the year-earlier quarter. Gross profit decreased 3.7% year over year to $157 million. Gross margin advanced 10 basis points (bps) year over year to 33%, driven by favorable product mix, primarily in the Gas segment.
Adjusted operating expenses decreased 8.8% year over year to $119.6 million. Itron posted adjusted operating income of $37.6 million compared with $32 million posted in the year-ago quarter. Operating margin expanded 150 bps to 7.9% in the quarter.
Segment Performance
Electricity Segment: Net sales at the Electricity segment climbed 9.9% year over year to $238.8 million in first-quarter 2017. The segment reported adjusted operating income of $22.7 million, up 32% from $19 million in the year-ago quarter.
Gas Segment: The segment’s sales dropped 10.8% year over year to $124 million. Adjusted operating income came in at $23.6 million, up 23% year over year.
Water Segment: The Water segment reported sales of $114.6 million, down 18.7% from $141 million recorded in the prior-year quarter. The segment reported adjusted operating profit of $10.7 million, plunging 45% from $19.3 million posted in the comparable period last year.
Financial Position
Itron had cash and cash equivalents of $187.9 million at the end of first-quarter 2017 compared with $133.6 million at the end of 2016. The company recorded cash from operations of $63.3 million in the reported quarter compared with $33.8 million recorded in the year-ago quarter.
Bookings and Backlog
Itron had bookings of $424 million in first-quarter 2017. In the reported quarter, backlog came in at $1.6 billion and the 12-month backlog totaled $819 million, up 7% and 4%, respectively, compared with first-quarter 2016.
Itron anticipates that its investment in the OpenWay Riva IoT solution and differentiated software and services offerings, combined with ongoing operational discipline, will drive financial results.
Share Price Performance
In the past one year, Itron has unperformed the Zacks categorized Electronics Testing Equipment sub-industry. The company’s shares have gained around 51% compared with nearly 53.5% growth recorded by the industry.
Itron currently carries a Zacks Rank #2 (Buy).
Other Key Picks
Other stocks worth considering in the same space include APPLIED OPTOELECTRONICS, INC. (AAOI - Free Report) , Teradyne, Inc. (TER - Free Report) and Axcelis Technologies, Inc. (ACLS - Free Report) . All of these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
APPLIED OPTOELECTRONICS has a remarkable positive average earnings surprise of 116.49% for the last four quarters. Teradyne generated a positive average earnings surprise of 25.10% over the trailing four quarters. Axcelis Technologies has delivered an impressive average positive earnings surprise of 151.25% in the past four quarters.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>