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Itron's OpenWay Riva to be Leveraged by NorthWestern Energy

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Itron, Inc. (ITRI - Free Report) recently signed a contract with NorthWestern Energy. Per the contract, NorthWestern Energy will install Itron’s OpenWay Riva IoT solution to modernize the electric and gas systems of the former in South Dakota and Nebraska.

About NorthWestern Energy

Notably, NorthWestern Corporation (NWE - Free Report) , which conducts business as NorthWestern Energy, provides reliable and affordable electricity and natural gas services to approximately 718,300 customers in Montana, South Dakota and Nebraska. The company has the exclusive right to serve an area in South Dakota comprising 25 counties.

Deal Details

Per the deal, NorthWestern Energy will leverage Itron’s OpenWay Riva solution, which offers adaptive communications technology through deploying a single-network solution featuring multiple communication technologies.

Thus, OpenWay Riva’s distributed computing power in every electric and gas meter will assist NorthWestern Energy to control the rapidly-changing electric grid conditions and assure safe delivery of gas. Moreover, the solution will enable the company to operate its system more efficiently while reducing operating costs, as well as ensuring theft detection, outage management, high impedance detection and other safety diagnostics.

OpenWay Riva a Boon for Itron

Notably, Itron’s OpenWay Riva features a standards-compliant, IPv6 multi-application network, jointly developed by Itron and Cisco Systems, Inc. (CSCO - Free Report) .

Last month, Utilidata, Inc. a global software company and Itron joined forces to deliver a technology solution to help electric utility companies modernize the electric grid. Through this collaboration, Utilidata's industry-leading AdaptiVolt voltage optimization capabilities will be available as a distributed intelligence application residing on meters and other devices within Itron's OpenWay Riva IoT solution.

Itron shipped a record 4.6 million smart systems and endpoints in fourth-quarter 2017, led by strong demand for OpenWay Riva and new solutions. Itron will likely benefit from its backlog strength, backed by a solid base of OpenWay Riva platform, including smart metering, smart grid or smart cities, and the Internet of Things.

Share Price Performance

In the past year, Itron has underperformed the industry it belongs to, partly due to elevated expenses. The company’s shares have gained around 17.6% compared with 30.3% growth recorded by the industry.



Zacks Rank & Key Picks

Itron carries a Zacks Rank #3 (Hold). A better-ranked stock in the same industry includes AMETEK, Inc. (AME - Free Report) which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here. AMETEK has an expected long-term earnings growth rate of 11.5%. The company’s shares have appreciated 41% in the past year.

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