Itron, Inc. (ITRI - Free Report) reported adjusted earnings of 68 cents per share in fourth-quarter 2016, a 51% rise from 45 cents in the year-ago quarter. Earnings per share surpassed the Zacks Consensus Estimate of 57 cents by a margin of 19%.
Including one-time items, the company reported earnings of 30 cents per share, a 30% increase from 23 cents in the year-ago quarter.
Total revenue remained flat at $495.7 compared with the prior-year quarter but handily beat the Zacks Consensus Estimate of $472.5 million. Foreign currency exchange rates had an unfavorable impact of around $7 million on revenues. Improvement in the Electricity segment was offset by decline in the Gas and Water segments.
Cost of goods sold edged down 1% to $339 million from $344 million in the prior-year quarter. Gross profit increased 3% year over year to $157 million. Gross margin expanded 90 basis points (bps) to 31.6%, due to favorable product mix and reduced warranty expense, partially countered by increased variable compensation.
Adjusted operating expenses decreased 11% year over year to $112 million, owing to lower legal costs and reduced headcount in general and administrative departments, which was partially neutralized by higher variable compensation costs. Itron posted adjusted operating income of $44.7 million compared with $25.9 million in the year-ago quarter. Operating margin expanded 380 bps to 9% in the quarter.
Segment Performance
Electricity Segment: Net sales at the Electricity segment escalated 13% year over year to $245.6 million in fourth-quarter 2016. The segment reported adjusted operating income of $22.7 million increased 11% from $20.4 million in the year-ago quarter.
Gas Segment: The segment’s sales dropped 5% year over year to $135.8 million. Adjusted operating income was $23.3 million, a 7% year-over-year decline.
Water Segment: The Water segment reported sales of $114.4 million, down 16% from $136 million in the prior-year quarter. The segment reported adjusted operating profit of $10.5 million, up 2% from $10.3 million posted in the year-ago quarter.
Itron, Inc. Price, Consensus and EPS Surprise
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Itron, Inc. (ITRI - Free Report) reported adjusted earnings of 68 cents per share in fourth-quarter 2016, a 51% rise from 45 cents in the year-ago quarter. Earnings per share surpassed the Zacks Consensus Estimate of 57 cents by a margin of 19%.
Including one-time items, the company reported earnings of 30 cents per share, a 30% increase from 23 cents in the year-ago quarter.
Total revenue remained flat at $495.7 compared with the prior-year quarter but handily beat the Zacks Consensus Estimate of $472.5 million. Foreign currency exchange rates had an unfavorable impact of around $7 million on revenues. Improvement in the Electricity segment was offset by decline in the Gas and Water segments.
Cost of goods sold edged down 1% to $339 million from $344 million in the prior-year quarter. Gross profit increased 3% year over year to $157 million. Gross margin expanded 90 basis points (bps) to 31.6%, due to favorable product mix and reduced warranty expense, partially countered by increased variable compensation.
Adjusted operating expenses decreased 11% year over year to $112 million, owing to lower legal costs and reduced headcount in general and administrative departments, which was partially neutralized by higher variable compensation costs. Itron posted adjusted operating income of $44.7 million compared with $25.9 million in the year-ago quarter. Operating margin expanded 380 bps to 9% in the quarter.
Segment Performance
Electricity Segment: Net sales at the Electricity segment escalated 13% year over year to $245.6 million in fourth-quarter 2016. The segment reported adjusted operating income of $22.7 million increased 11% from $20.4 million in the year-ago quarter.
Gas Segment: The segment’s sales dropped 5% year over year to $135.8 million. Adjusted operating income was $23.3 million, a 7% year-over-year decline.
Water Segment: The Water segment reported sales of $114.4 million, down 16% from $136 million in the prior-year quarter. The segment reported adjusted operating profit of $10.5 million, up 2% from $10.3 million posted in the year-ago quarter.
Itron, Inc. Price, Consensus and EPS Surprise
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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