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Itron Inc (ITRI - Free Report) reported non-GAAP earnings of 65 cents per share in second-quarter 2023, surpassing the Zacks Consensus Estimate by 109.7%. The company reported earnings of 7 cents in the prior-year quarter.
Revenues were $541.1 million, which beat the Zacks Consensus Estimate by 4.5%. The top line improved 25% year over year.
The top-line performance was driven by strong operational execution and easing supply-chain issues.
Product revenues were $464.8 million (86% of total revenues), up 29.1% year over year. Service revenues totaled $76.3 million (14%), up 5.9% from the year-ago quarter’s levels.
Itron’s bookings were $475 million and backlog amounted to $4.5 billion at the end of the reported quarter.
Device Solutions: Revenues generated from this segment were $113 million (20.9% of total revenues), up 8% from the year-ago quarter due to increasing demand for company’s solutions in the fast-growing Water vertical. Our estimate for segmental revenues was pegged at $121.6 million.
Networked Solutions: Segmental revenues totaled $361 million (66.7%), up 34% year over year, driven by easing of supply-chain issues. Our estimate for segmental revenues was pegged at $327.6 million.
Outcomes: The segment’s revenues of $67 million (12.4%) improved 16% on a year-over-year basis due to higher recurring services and software license sales, driven by Distributed Intelligence. Our estimate for segmental revenues was pegged at $65 million.
Operating Details
Itron’s gross margin in the second quarter was 32.1%, which expanded 290 basis points on a year-over-year basis. Favorable mix and operational efficiency resulted in the uptick.
Non-GAAP operating expenses of $132.6 million jumped 13.3% year over year.
Non-GAAP operating income was $41.4 million compared with $9.1 million in the year-ago period. The upside was driven by higher gross profit and revenues.
Balance Sheet & Cash Flows
As of Jun 30, cash and cash equivalents totaled $232.8 million, up from $196 million as of Mar 31, 2023. Accounts receivables of $318.8 million improved from $305.3 million in the prior quarter.
As of Jun 30, net long-term debt was $453.7 million compared with $453.1 million as of Mar 31, 2023.
Itron generated $42 million of cash from operations in the reported quarter compared with $1.4 million in the prior-year quarter.
In the reported quarter, free cash flow was $36 million compared with $5 million in the prior-year quarter.
Guidance
For the third quarter, ITRI expects revenues to be between $535 million and $545 million.
Non-GAAP earnings per share are anticipated in the range of 44-56 cents.
For the 2023, management projects revenues to be between $2.11 billion and $2.14 billion.
Non-GAAP earnings per share are estimated in the $2.03 - $2.28 band.
Currently, Itron sports a Zacks Rank #1 (Strong Buy).
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has gained 6.3% in the past 60 days to $2.86 per share. BMI’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 6.7%. Shares of BMI have surged 70% in the past year.
The consensus mark for Salesforce’s fiscal 2024 earnings is pegged at $7.44 per share, up 0.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 19.3%.
CRM’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 15.5%. Shares of CRM have grown 13.8% in the past year.
The consensus estimate for Autodesk’s fiscal 2024 earnings of $7.25 per share remained flat in the past 60 days. The long-term earnings growth rate is anticipated to be 24.3%.
ADSK’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average beat being 2.1%. Shares of ADSK have declined 8.6% in the past year.
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Itron (ITRI) Q2 Earnings & Revenues Beat Estimates, Rise Y/Y
Itron Inc (ITRI - Free Report) reported non-GAAP earnings of 65 cents per share in second-quarter 2023, surpassing the Zacks Consensus Estimate by 109.7%. The company reported earnings of 7 cents in the prior-year quarter.
Revenues were $541.1 million, which beat the Zacks Consensus Estimate by 4.5%. The top line improved 25% year over year.
The top-line performance was driven by strong operational execution and easing supply-chain issues.
Product revenues were $464.8 million (86% of total revenues), up 29.1% year over year. Service revenues totaled $76.3 million (14%), up 5.9% from the year-ago quarter’s levels.
Itron’s bookings were $475 million and backlog amounted to $4.5 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: Revenues generated from this segment were $113 million (20.9% of total revenues), up 8% from the year-ago quarter due to increasing demand for company’s solutions in the fast-growing Water vertical. Our estimate for segmental revenues was pegged at $121.6 million.
Networked Solutions: Segmental revenues totaled $361 million (66.7%), up 34% year over year, driven by easing of supply-chain issues. Our estimate for segmental revenues was pegged at $327.6 million.
Outcomes: The segment’s revenues of $67 million (12.4%) improved 16% on a year-over-year basis due to higher recurring services and software license sales, driven by Distributed Intelligence. Our estimate for segmental revenues was pegged at $65 million.
Operating Details
Itron’s gross margin in the second quarter was 32.1%, which expanded 290 basis points on a year-over-year basis. Favorable mix and operational efficiency resulted in the uptick.
Non-GAAP operating expenses of $132.6 million jumped 13.3% year over year.
Non-GAAP operating income was $41.4 million compared with $9.1 million in the year-ago period. The upside was driven by higher gross profit and revenues.
Balance Sheet & Cash Flows
As of Jun 30, cash and cash equivalents totaled $232.8 million, up from $196 million as of Mar 31, 2023. Accounts receivables of $318.8 million improved from $305.3 million in the prior quarter.
As of Jun 30, net long-term debt was $453.7 million compared with $453.1 million as of Mar 31, 2023.
Itron generated $42 million of cash from operations in the reported quarter compared with $1.4 million in the prior-year quarter.
In the reported quarter, free cash flow was $36 million compared with $5 million in the prior-year quarter.
Guidance
For the third quarter, ITRI expects revenues to be between $535 million and $545 million.
Non-GAAP earnings per share are anticipated in the range of 44-56 cents.
For the 2023, management projects revenues to be between $2.11 billion and $2.14 billion.
Non-GAAP earnings per share are estimated in the $2.03 - $2.28 band.
Currently, Itron sports a Zacks Rank #1 (Strong Buy).
Other Key Picks
Some other top-ranked stocks worth consideration in the broader technology space are Badger Meter (BMI - Free Report) , Salesforce (CRM - Free Report) and Autodesk (ADSK - Free Report) . Badger Meter flaunts a Zacks Rank #1 while each of Salesforce and Autodesk 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 Badger Meter’s 2023 earnings has gained 6.3% in the past 60 days to $2.86 per share. BMI’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 6.7%. Shares of BMI have surged 70% in the past year.
The consensus mark for Salesforce’s fiscal 2024 earnings is pegged at $7.44 per share, up 0.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 19.3%.
CRM’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 15.5%. Shares of CRM have grown 13.8% in the past year.
The consensus estimate for Autodesk’s fiscal 2024 earnings of $7.25 per share remained flat in the past 60 days. The long-term earnings growth rate is anticipated to be 24.3%.
ADSK’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average beat being 2.1%. Shares of ADSK have declined 8.6% in the past year.