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Itron Inc. (ITRI - Free Report) reported first-quarter 2022 non-GAAP earnings of 11 cents per share, which surpassed the Zacks Consensus Estimate by 22.2%. The bottom line decreased 78.9% year over year.
Revenues were $475.3 million, which lagged the Zacks Consensus Estimate by 1.8%. Further, the top line declined 9% 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.
Product revenues were $399.8 million (84.1% of total revenues), down 9.7% year over year. Service revenues totaled $75.5 million (15.9%), down 1.6% from the year-ago quarter’s levels.
The company’s bookings were $417 million and the backlog totaled $3.9 billion at the end of the reported quarter.
Device Solutions: The company generated revenues of $140 million (29.4% of the total revenues) from the segment, down 19% from the year-ago quarter.
Networked Solutions: Revenues from the segment were $279 million (58.6% of the total revenues), down 3% year over year.
Outcomes: The segment generated revenues of $57 million (12% of the total revenues), down 3% on a year-over-year basis, driven by decreased product and software license sales.
Operating Details
Itron’s gross margin in the first quarter was 28.4%, which contracted 380 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 $126 million, down 1.7% year over year due to lower product development expenses.
Non-GAAP operating income was $9.3 million, down 76% year over year. Operating income was $6.8 million, declining 78% from the year-ago quarter. Non-GAAP operating margin in the first quarter was 2%, which contracted 550 bps on a year-over-year basis.
Balance Sheet & Cash Flows
As of Mar 31, 2022, cash and cash equivalents totaled $203.9 million, up from $162.5 million as of Dec 31, 2021. Accounts receivables were $303.2 million, up from $298.5 million in the prior quarter.
Long-term debt at the end of the first quarter stood at $450.8 million compared with $450.2 million at the end of the quarter ended Dec 31, 2021.
Itron generated $7.6 million of cash from operations in the reported quarter compared with $50 million in the prior quarter.
It generated a free cash flow of $2.2 million in the reported quarter compared with $38.5 million in the prior quarter.
Zacks Rank & Stocks to Consider
Currently, Itron has a Zacks Rank #5 (Strong Sell).
The Zacks Consensus Estimate for Pure Storage’s fiscal 2023 earnings is pegged at 86 cents per share, rising 22.9% in the past 60 days. The long-term earnings growth rate is expected to be 30.9%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average being 99.2%. Shares of Pure Storage have risen 52.2% in the past year.
The Zacks Consensus Estimate for Jabil’s fiscal 2022 earnings is pegged at $7.25 per share, rising 10.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average being 13.5%. Shares of Jabil have grown 10.5% in the past year.
The Zacks Consensus Estimate for Celestica’s 2022 earnings is pegged at $1.68 per share, rising 4.3% in the past 60 days. The long-term earnings growth rate is expected to be 14.5%.
Celestica’s earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average being 12.6%. Shares of Celestica have risen 29.2% in the past year.
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Itron (ITRI) Q1 Earnings Beat Estimates, Revenues Dip Y/Y
Itron Inc. (ITRI - Free Report) reported first-quarter 2022 non-GAAP earnings of 11 cents per share, which surpassed the Zacks Consensus Estimate by 22.2%. The bottom line decreased 78.9% year over year.
Revenues were $475.3 million, which lagged the Zacks Consensus Estimate by 1.8%. Further, the top line declined 9% 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.
Product revenues were $399.8 million (84.1% of total revenues), down 9.7% year over year. Service revenues totaled $75.5 million (15.9%), down 1.6% from the year-ago quarter’s levels.
The company’s bookings were $417 million and the backlog totaled $3.9 billion at the end of the reported quarter.
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 $140 million (29.4% of the total revenues) from the segment, down 19% from the year-ago quarter.
Networked Solutions: Revenues from the segment were $279 million (58.6% of the total revenues), down 3% year over year.
Outcomes: The segment generated revenues of $57 million (12% of the total revenues), down 3% on a year-over-year basis, driven by decreased product and software license sales.
Operating Details
Itron’s gross margin in the first quarter was 28.4%, which contracted 380 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 $126 million, down 1.7% year over year due to lower product development expenses.
Non-GAAP operating income was $9.3 million, down 76% year over year. Operating income was $6.8 million, declining 78% from the year-ago quarter.
Non-GAAP operating margin in the first quarter was 2%, which contracted 550 bps on a year-over-year basis.
Balance Sheet & Cash Flows
As of Mar 31, 2022, cash and cash equivalents totaled $203.9 million, up from $162.5 million as of Dec 31, 2021. Accounts receivables were $303.2 million, up from $298.5 million in the prior quarter.
Long-term debt at the end of the first quarter stood at $450.8 million compared with $450.2 million at the end of the quarter ended Dec 31, 2021.
Itron generated $7.6 million of cash from operations in the reported quarter compared with $50 million in the prior quarter.
It generated a free cash flow of $2.2 million in the reported quarter compared with $38.5 million in the prior quarter.
Zacks Rank & Stocks to Consider
Currently, Itron has a Zacks Rank #5 (Strong Sell).
Some better-ranked companies from the broader technology sector are Pure Storage (PSTG - Free Report) , Jabil (JBL - Free Report) and Celestica (CLS - Free Report) . Pure Storage and Jabil currently sport a Zacks Rank #1 (Strong Buy), whereas Celestica 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 Pure Storage’s fiscal 2023 earnings is pegged at 86 cents per share, rising 22.9% in the past 60 days. The long-term earnings growth rate is expected to be 30.9%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average being 99.2%. Shares of Pure Storage have risen 52.2% in the past year.
The Zacks Consensus Estimate for Jabil’s fiscal 2022 earnings is pegged at $7.25 per share, rising 10.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average being 13.5%. Shares of Jabil have grown 10.5% in the past year.
The Zacks Consensus Estimate for Celestica’s 2022 earnings is pegged at $1.68 per share, rising 4.3% in the past 60 days. The long-term earnings growth rate is expected to be 14.5%.
Celestica’s earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average being 12.6%. Shares of Celestica have risen 29.2% in the past year.