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Itron (ITRI) Earnings Beat Estimates in Q4, Revenues Miss
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Itron, Inc. (ITRI - Free Report) reported fourth-quarter 2021 non-GAAP earnings of 75 cents per share, which surpassed the Zacks Consensus Estimate by 240.9%. The bottom line increased 15.4% year over year.
Revenues were $485.6 million, which lagged the Zacks Consensus Estimate of $536.5 million. Further, the top line declined 7.5% year over year.
The decline in the top line was attributed to component constraints, which offset robust customer demand. Sluggishness in the company’s Device Solutions and Networked Solutions segment was a major concern.
Itron also completed the sale of its Gas device manufacturing and business operations in Europe and North America to Dresser Utility Solutions. The transaction was announced in November 2021.
Product revenues were $412.7 million (85% of total revenues), down 8.6% year over year. Service revenues totaled $72.9 million (15%), down 1.2% from the year-ago quarter’s levels.
The company’s bookings were $1.1 billion and the backlog totaled $4 billion at the end of the reported quarter.
For 2021, the company reported non-GAAP earnings of $1.75, down 5.4% from 2020. Revenues were $1.982 billion, down 8.8% year over year.
Device Solutions: The company generated revenues of $157 million (32.4% of total revenues) from the segment, down 16% from the year-ago quarter.
Networked Solutions: Revenues from the segment were $265 million (54.5% of total revenues), down 5% year over year.
Outcomes: The segment generated revenues of $64 million (13.1% of total revenues), up 4% on a year-over-year basis driven by increases in software and professional services.
Operating Details
Itron’s gross margin in the fourth quarter was 25%, which contracted 330 basis points (bps) on a year-over-year basis. The downside was caused by increasing component costs and manufacturing inefficiencies.
Non-GAAP operating expenses were $127.9 million, up 21.5% year over year.
Non-GAAP operating loss was $6.6 million compared with operating income of $43.6 million reported in the year-ago quarter.
Balance Sheet & Cash Flows
As of Dec 31, 2021, cash and cash equivalents totaled $162.6 million, down from $188.7 million as of Sep 30, 2021. Accounts receivables were $298.5 million, down from $320.9 million in the prior quarter.
Long-term debt at the end of the fourth quarter stood at $450.2 million compared with $449.6 million at the end of the third quarter.
Itron generated $14 million of cash from operations in the reported quarter compared with $18.5 million in the prior quarter.
It generated a free cash flow of $7 million in the fourth quarter.
As of Feb 28, 2022, Itron has repurchased 400,000 shares worth $25 million. The company had announced a $100 million share buyback plan over 18-month period in November 2021.
Guidance
Itron expects supply chain headwinds to persist in the first half of 2022 and expects it to abate from the second half. The company expects the demand environment to remain strong in 2022.
For 2022, Itron expects revenues in the range of $2-$2.1 billion, while non-GAAP earnings is expected between $1.25 and $1.75 per share.
The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $33.18 per share. The long-term earnings growth rate of the company is pegged at 14.5%.
Broadcom’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 1.41%. Shares of Broadcom have increased 25.8% in the past year.
The Zacks Consensus Estimate for Apple’s fiscal 2022 earnings is pegged at $6.16 per share. The long-term earnings growth rate of the company is pegged at 12.5%.
Apple’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 20.3%. Shares of AAPL have rallied 32.8% in the past year.
The Zacks Consensus Estimate for Texas Instruments for 2022 earnings is pegged at $9.09 per share. The long-term earnings growth rate of the company is pegged at 9.3%.
Texas Instruments’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 12.4%. Shares of TXN have declined 0.5% in the past year.
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Itron (ITRI) Earnings Beat Estimates in Q4, Revenues Miss
Itron, Inc. (ITRI - Free Report) reported fourth-quarter 2021 non-GAAP earnings of 75 cents per share, which surpassed the Zacks Consensus Estimate by 240.9%. The bottom line increased 15.4% year over year.
Revenues were $485.6 million, which lagged the Zacks Consensus Estimate of $536.5 million. Further, the top line declined 7.5% year over year.
The decline in the top line was attributed to component constraints, which offset robust customer demand. Sluggishness in the company’s Device Solutions and Networked Solutions segment was a major concern.
Itron also completed the sale of its Gas device manufacturing and business operations in Europe and North America to Dresser Utility Solutions. The transaction was announced in November 2021.
Product revenues were $412.7 million (85% of total revenues), down 8.6% year over year. Service revenues totaled $72.9 million (15%), down 1.2% from the year-ago quarter’s levels.
The company’s bookings were $1.1 billion and the backlog totaled $4 billion at the end of the reported quarter.
For 2021, the company reported non-GAAP earnings of $1.75, down 5.4% from 2020. Revenues were $1.982 billion, down 8.8% year over year.
Itron, Inc. Price, Consensus and EPS Surprise
Itron, Inc. price-consensus-eps-surprise-chart | Itron, Inc. Quote
Segments in Detail
Device Solutions: The company generated revenues of $157 million (32.4% of total revenues) from the segment, down 16% from the year-ago quarter.
Networked Solutions: Revenues from the segment were $265 million (54.5% of total revenues), down 5% year over year.
Outcomes: The segment generated revenues of $64 million (13.1% of total revenues), up 4% on a year-over-year basis driven by increases in software and professional services.
Operating Details
Itron’s gross margin in the fourth quarter was 25%, which contracted 330 basis points (bps) on a year-over-year basis. The downside was caused by increasing component costs and manufacturing inefficiencies.
Non-GAAP operating expenses were $127.9 million, up 21.5% year over year.
Non-GAAP operating loss was $6.6 million compared with operating income of $43.6 million reported in the year-ago quarter.
Balance Sheet & Cash Flows
As of Dec 31, 2021, cash and cash equivalents totaled $162.6 million, down from $188.7 million as of Sep 30, 2021. Accounts receivables were $298.5 million, down from $320.9 million in the prior quarter.
Long-term debt at the end of the fourth quarter stood at $450.2 million compared with $449.6 million at the end of the third quarter.
Itron generated $14 million of cash from operations in the reported quarter compared with $18.5 million in the prior quarter.
It generated a free cash flow of $7 million in the fourth quarter.
As of Feb 28, 2022, Itron has repurchased 400,000 shares worth $25 million. The company had announced a $100 million share buyback plan over 18-month period in November 2021.
Guidance
Itron expects supply chain headwinds to persist in the first half of 2022 and expects it to abate from the second half. The company expects the demand environment to remain strong in 2022.
For 2022, Itron expects revenues in the range of $2-$2.1 billion, while non-GAAP earnings is expected between $1.25 and $1.75 per share.
Zacks Rank & Stocks to Consider
Currently, Itron has a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering from the broader technology sector include Broadcom (AVGO - Free Report) , Apple (AAPL - Free Report) and Texas Instruments (TXN - Free Report) . Apple and Texas Instruments sport a Zacks Rank #1 (Strong Buy), while Broadcom carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $33.18 per share. The long-term earnings growth rate of the company is pegged at 14.5%.
Broadcom’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 1.41%. Shares of Broadcom have increased 25.8% in the past year.
The Zacks Consensus Estimate for Apple’s fiscal 2022 earnings is pegged at $6.16 per share. The long-term earnings growth rate of the company is pegged at 12.5%.
Apple’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 20.3%. Shares of AAPL have rallied 32.8% in the past year.
The Zacks Consensus Estimate for Texas Instruments for 2022 earnings is pegged at $9.09 per share. The long-term earnings growth rate of the company is pegged at 9.3%.
Texas Instruments’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 12.4%. Shares of TXN have declined 0.5% in the past year.