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Itron Inc (ITRI - Free Report) reported non-GAAP earnings per share (EPS) of $1.23 in fourth-quarter 2023, which surpassed the Zacks Consensus Estimate by 64%. The company reported earnings of 71 cents in the prior-year quarter.
Revenues were $577.2 million, which beat the Zacks Consensus Estimate by 1.1%. The top line improved 23% year over year.
The top-line performance was driven by strong operational execution and easing of supply-chain issues.
Product revenues were $502 million (87% of total revenues), up 27.8% year over year. Service revenues totaled $75.2 million (13%), up 0.5% from the year-ago levels.
Itron’s bookings were $839 million, and its backlog amounted to $4.5 billion at the end of the reported quarter.
Segments in Detail
Device Solutions: Revenues generated from this segment were $114 million (19.8% of total revenues), up 13% from the year-ago quarter due to higher demand for smart water meter and communication module sales. Our estimate was pegged at $118.2 million.
Networked Solutions: Segmental revenues totaled $391 million (67.7%), up 30% year over year, driven by solid factory output enabled by improved component supply. We suggested the metric to be $379 million.
Outcomes: The segment’s revenues of $73 million (12.5%) improved 10% on a year-over-year basis due to higher recurring and one-time services revenues. Our projection was $72.5 million.
Operating Details
Itron’s gross margin in the fourth quarter was 34%, which expanded 390 basis points on a year-over-year basis. Favorable mix and operational efficiency resulted in the uptick.
Non-GAAP operating expenses of $135.5 million jumped 17.3% year over year, primarily due to higher research and development costs.
Non-GAAP operating income was $60.9 million compared with $25.3 million in the year-ago period. The upside was driven by higher gross profit.
Balance Sheet & Cash Flows
As of Dec 31, 2023, cash and cash equivalents totaled $302 million, up from $254.8 million as of Sep 30. Accounts receivables were $303.8 million compared with $318.1 million in the prior quarter.
As of Dec 31, net long-term debt was $454.8 million compared with $454.3 million as of Sep 30, 2023.
Itron generated $47.9 million of cash from operations in the reported quarter against $13 million cash outflow from operations in the prior-year quarter. Free cash flow was $39.3 million against $17.9 million free cash outflow in the year-ago period.
Guidance
For the first quarter of 2024, ITRI expects revenues between $575 million and $585 million.
Non-GAAP EPS is anticipated to be in the range of 80-90 cents.
For 2024, management projects revenues between $2.275 billion and $2.375 billion. Non-GAAP EPS is estimated to be in the band of $3.40-$3.80.
Zacks Rank and Key Picks
Currently, Itron carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the broader technology space are Cadence Design Systems (CDNS - Free Report) , Woodward (WWD - Free Report) and Watts Water Technologies (WTS - Free Report) . Cadence and Woodward sport a Zacks Rank #1 (Strong Buy), while Watts Water Technologies 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 Cadence’s 2024 EPS has improved 1.9% in the past 60 days to $5.87. CDNS’s long-term earnings growth rate is 17.1%.
Cadence’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 3.4%. Shares of CDNS have gained 57.2% in the past year.
The Zacks Consensus Estimate for Woodward’s fiscal 2024 EPS has inched up 5.7% in the past 60 days to $5.27. WWD’s long-term earnings growth rate is 15.5%.
Woodward’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 27.2%. Shares of WWD have gained 37.9% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies fiscal 2024 EPS has improved 1.3% in the past 60 days to $8.44. WTS’s long-term earnings growth rate is 7.8%.
WTS’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 13.5%. Shares of WTS have soared 13% in the past year.
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Itron (ITRI) Q4 Earnings & Revenues Beat Estimates, Rise Y/Y
Itron Inc (ITRI - Free Report) reported non-GAAP earnings per share (EPS) of $1.23 in fourth-quarter 2023, which surpassed the Zacks Consensus Estimate by 64%. The company reported earnings of 71 cents in the prior-year quarter.
Revenues were $577.2 million, which beat the Zacks Consensus Estimate by 1.1%. The top line improved 23% year over year.
The top-line performance was driven by strong operational execution and easing of supply-chain issues.
Itron, Inc. Price, Consensus and EPS Surprise
Itron, Inc. price-consensus-eps-surprise-chart | Itron, Inc. Quote
Product revenues were $502 million (87% of total revenues), up 27.8% year over year. Service revenues totaled $75.2 million (13%), up 0.5% from the year-ago levels.
Itron’s bookings were $839 million, and its backlog amounted to $4.5 billion at the end of the reported quarter.
Segments in Detail
Device Solutions: Revenues generated from this segment were $114 million (19.8% of total revenues), up 13% from the year-ago quarter due to higher demand for smart water meter and communication module sales. Our estimate was pegged at $118.2 million.
Networked Solutions: Segmental revenues totaled $391 million (67.7%), up 30% year over year, driven by solid factory output enabled by improved component supply. We suggested the metric to be $379 million.
Outcomes: The segment’s revenues of $73 million (12.5%) improved 10% on a year-over-year basis due to higher recurring and one-time services revenues. Our projection was $72.5 million.
Operating Details
Itron’s gross margin in the fourth quarter was 34%, which expanded 390 basis points on a year-over-year basis. Favorable mix and operational efficiency resulted in the uptick.
Non-GAAP operating expenses of $135.5 million jumped 17.3% year over year, primarily due to higher research and development costs.
Non-GAAP operating income was $60.9 million compared with $25.3 million in the year-ago period. The upside was driven by higher gross profit.
Balance Sheet & Cash Flows
As of Dec 31, 2023, cash and cash equivalents totaled $302 million, up from $254.8 million as of Sep 30. Accounts receivables were $303.8 million compared with $318.1 million in the prior quarter.
As of Dec 31, net long-term debt was $454.8 million compared with $454.3 million as of Sep 30, 2023.
Itron generated $47.9 million of cash from operations in the reported quarter against $13 million cash outflow from operations in the prior-year quarter.
Free cash flow was $39.3 million against $17.9 million free cash outflow in the year-ago period.
Guidance
For the first quarter of 2024, ITRI expects revenues between $575 million and $585 million.
Non-GAAP EPS is anticipated to be in the range of 80-90 cents.
For 2024, management projects revenues between $2.275 billion and $2.375 billion. Non-GAAP EPS is estimated to be in the band of $3.40-$3.80.
Zacks Rank and Key Picks
Currently, Itron carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the broader technology space are Cadence Design Systems (CDNS - Free Report) , Woodward (WWD - Free Report) and Watts Water Technologies (WTS - Free Report) . Cadence and Woodward sport a Zacks Rank #1 (Strong Buy), while Watts Water Technologies 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 Cadence’s 2024 EPS has improved 1.9% in the past 60 days to $5.87. CDNS’s long-term earnings growth rate is 17.1%.
Cadence’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 3.4%. Shares of CDNS have gained 57.2% in the past year.
The Zacks Consensus Estimate for Woodward’s fiscal 2024 EPS has inched up 5.7% in the past 60 days to $5.27. WWD’s long-term earnings growth rate is 15.5%.
Woodward’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 27.2%. Shares of WWD have gained 37.9% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies fiscal 2024 EPS has improved 1.3% in the past 60 days to $8.44. WTS’s long-term earnings growth rate is 7.8%.
WTS’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 13.5%. Shares of WTS have soared 13% in the past year.