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Itron (ITRI) Q3 Earnings Match Estimates, Revenues Down Y/Y
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Itron Inc (ITRI - Free Report) reported non-GAAP earnings of 23 cents per share in third-quarter 2022, in line with the Zacks Consensus Estimate. The bottom line increased 10% year over year.
Revenues were $420.9 million, which lagged the Zacks Consensus Estimate by 8.4%. Further, the top line declined 14% (down 9% on a constant-currency basis) year over year.
In the third quarter, performance was affected due to unexpected supplier decommitments, inadequate component deliveries and the irregular timing of crucial components arriving at the company’s factories.
The decline in the top line was attributed to supply challenges and component constraints, which offset robust customer demand. Also, the company exited from select product lines in the Device Solutions segment were headwinds.
Product revenues were $347.8 million (82.6% of total revenues), down 15.4% year over year. Service revenues totaled $73.1 million (17.4%), down 3.9% from the year-ago quarter’s levels.
The company’s bookings were $578 million and the backlog totaled $4.2 billion at the end of the reported quarter.
Segments in Detail
Device Solutions: The company generated revenues of $94 million (22.3% of the total revenues) from the segment, down 38% from the year-ago quarter due to product pruning and sale of the company’s C&I gas business.
Networked Solutions: Revenues from the segment were $270 million (64.1% of the total revenues), down 2% year over year, affected by component shortages.
Outcomes: The segment generated revenues of $57 million (13.6% of the total revenues), down 5% on a year-over-year basis, due to decreased EMEA prepay business.
Operating Details
Itron’s gross margin in the third quarter was 28.5%, which expanded 80 basis points (bps) on a year-over-year basis. The uptick was caused by favorable mix partly offset by inefficiencies due to component shortages.
Non-GAAP operating expenses were $105 million, down 11.3% year over year due to lower product development and sales, general and administrative expenses.
Non-GAAP operating income was $14.8 million, down 10% year over year. Non-GAAP operating margin in the third quarter was 3.5%, which expanded 10 bps year over year.
Balance Sheet & Cash Flows
As of Sep 30, 2022, cash and cash equivalents totaled $215.4 million, up from $208.5 million as of Jun 30, 2022. Accounts receivables were $266.7 million, up from $259.7 million in the prior quarter.
Long-term debt at the end of the third quarter stood at $451.9 million compared with $451.4 million at the end of the quarter ended Jun 30, 2022.
Itron generated $14.9 million of cash from operations in the reported quarter compared with $18.5 million in the prior quarter.
The company generated a free cash flow of $10.7 million in the reported quarter compared with $11.2 million in the prior quarter.
Q4 Guidance
The company expects supply-chain constraints to continue in the fourth quarter. For the fourth quarter, the company expects revenues between $420 and $460.
Non-GAAP diluted earnings per share are expected to be between breakeven and 15 cents.
The Zacks Consensus Estimate for InterDigital’s 2022 earnings is pegged at $2.45 per share, up 2.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
InterDigital’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 81.9%. Shares of IDCC have decreased 35.6% in the past year.
The Zacks Consensus Estimate for PSTG 2022 earnings is pegged at $1.18 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 35.5%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 171.8%. Shares of PSTG have increased 12.1% in the past year.
The Zacks Consensus Estimate for Jabil’s fiscal 2023 earnings is pegged at $8.18 per share, rising 3.8 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 three of the last four quarters, the average being 9.3%. Shares of JBL have decreased 1.4% in the past year.
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Itron (ITRI) Q3 Earnings Match Estimates, Revenues Down Y/Y
Itron Inc (ITRI - Free Report) reported non-GAAP earnings of 23 cents per share in third-quarter 2022, in line with the Zacks Consensus Estimate. The bottom line increased 10% year over year.
Revenues were $420.9 million, which lagged the Zacks Consensus Estimate by 8.4%. Further, the top line declined 14% (down 9% on a constant-currency basis) year over year.
In the third quarter, performance was affected due to unexpected supplier decommitments, inadequate component deliveries and the irregular timing of crucial components arriving at the company’s factories.
Itron, Inc. Price, Consensus and EPS Surprise
Itron, Inc. price-consensus-eps-surprise-chart | Itron, Inc. Quote
The decline in the top line was attributed to supply challenges and component constraints, which offset robust customer demand. Also, the company exited from select product lines in the Device Solutions segment were headwinds.
Product revenues were $347.8 million (82.6% of total revenues), down 15.4% year over year. Service revenues totaled $73.1 million (17.4%), down 3.9% from the year-ago quarter’s levels.
The company’s bookings were $578 million and the backlog totaled $4.2 billion at the end of the reported quarter.
Segments in Detail
Device Solutions: The company generated revenues of $94 million (22.3% of the total revenues) from the segment, down 38% from the year-ago quarter due to product pruning and sale of the company’s C&I gas business.
Networked Solutions: Revenues from the segment were $270 million (64.1% of the total revenues), down 2% year over year, affected by component shortages.
Outcomes: The segment generated revenues of $57 million (13.6% of the total revenues), down 5% on a year-over-year basis, due to decreased EMEA prepay business.
Operating Details
Itron’s gross margin in the third quarter was 28.5%, which expanded 80 basis points (bps) on a year-over-year basis. The uptick was caused by favorable mix partly offset by inefficiencies due to component shortages.
Non-GAAP operating expenses were $105 million, down 11.3% year over year due to lower product development and sales, general and administrative expenses.
Non-GAAP operating income was $14.8 million, down 10% year over year. Non-GAAP operating margin in the third quarter was 3.5%, which expanded 10 bps year over year.
Balance Sheet & Cash Flows
As of Sep 30, 2022, cash and cash equivalents totaled $215.4 million, up from $208.5 million as of Jun 30, 2022. Accounts receivables were $266.7 million, up from $259.7 million in the prior quarter.
Long-term debt at the end of the third quarter stood at $451.9 million compared with $451.4 million at the end of the quarter ended Jun 30, 2022.
Itron generated $14.9 million of cash from operations in the reported quarter compared with $18.5 million in the prior quarter.
The company generated a free cash flow of $10.7 million in the reported quarter compared with $11.2 million in the prior quarter.
Q4 Guidance
The company expects supply-chain constraints to continue in the fourth quarter. For the fourth quarter, the company expects revenues between $420 and $460.
Non-GAAP diluted earnings per share are expected to be between breakeven and 15 cents.
Zacks Rank & Stocks to Consider
Currently, Itron has a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader technology space are InterDigital (IDCC - Free Report) , Pure Storage (PSTG - Free Report) and Jabil (JBL - Free Report) . InterDigital and Jabil currently sport a Zacks Rank #1 (Strong Buy), whereas Pure Storage currently holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks.
The Zacks Consensus Estimate for InterDigital’s 2022 earnings is pegged at $2.45 per share, up 2.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
InterDigital’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 81.9%. Shares of IDCC have decreased 35.6% in the past year.
The Zacks Consensus Estimate for PSTG 2022 earnings is pegged at $1.18 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 35.5%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 171.8%. Shares of PSTG have increased 12.1% in the past year.
The Zacks Consensus Estimate for Jabil’s fiscal 2023 earnings is pegged at $8.18 per share, rising 3.8 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 three of the last four quarters, the average being 9.3%. Shares of JBL have decreased 1.4% in the past year.