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Itron Gears Up to Report Q4 Earnings: Here's What to Expect

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Itron, Inc. (ITRI - Free Report) is slated to report fourth-quarter 2024 earnings on Feb. 25, before market open.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The company expects fourth-quarter revenues to be between $600 million and $610 million. The Zacks Consensus Estimate is pegged at $603.2 million, indicating an increase of 4.5% from a year ago.

Non-GAAP earnings per share are anticipated to be $1.00-$1.10. The Zacks Consensus Estimate is pegged at $1.05 per share. The company reported earnings of $1.23 per share in the year-ago quarter.

ITRI’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 49.7%. The stock has gained 31.5% in the past year compared with the Zacks Electronics-Testing Equipment industry’s growth of 3.8%.

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Key Factors at Play

Healthy demand momentum, robust operational execution and the timing of customer shipments are likely to have aided Itron’s performance in the fourth quarter.

Continued strength in the Grid Edge Intelligence platform is a tailwind. Multiple factors, such as data center-related demand growth, reindustrialization and production localization, as well as electrification of transportation and homes, are driving the platform’s growth prospects. The automation of water infrastructure, safety applications for gas customers and the digitalization of its operations are major driving forces.

Higher demand for electric vehicles (EVs) and distributed energy resources (DERs) is likely to have buoyed customer bookings. Management plans to capitalize on the growing uptake of artificial intelligence (AI) and machine learning (ML) solutions across the utility industry, promoting infrastructure modernization and cutting-edge data analysis.

The Device Solutions segment is likely to have been driven by strong sales of smart water and electric solutions. The Networked Solutions unit is gaining traction with new projects and ongoing large-scale deployments. The Outcomes segment has been gaining from higher recurring revenues, services and software offerings. We expect fourth-quarter revenues from the Device Solutions, Outcomes and Networked Solutions segments to be $116.5 million, $407.6 million and $78.6 million, respectively.

Itron, Inc. Price and EPS Surprise

Itron, Inc. Price and EPS Surprise

Itron, Inc. price-eps-surprise | Itron, Inc. Quote

 

However, rising operating costs and a debt-laden balance sheet amid an uncertain macroeconomic landscape pose concerns.

Recent Developments

On Jan. 22, 2025, Itron partnered with Encycle Technologies, Inc. to foster energy management efficiency for both commercial and industrial customers by combining Encycle’s expertise in autonomous intelligence and heating, ventilation and air-conditioning (HVAC) optimization with Itron’s innovative solutions for energy and water management. It focuses on reducing HVAC energy loads during peak demand challenges, mitigating grid stress and improving grid reliability.

On Dec. 19, 2024, Itron partnered with Xcel Energy to address Colorado's evolving energy needs. This collaboration focuses on integrating DERs, including residential battery energy storage, into the grid to enhance grid flexibility and reliability and meet customer demand. XEL will deploy Itron’s DERMS. This technology is part of Itron’s Grid Edge Intelligence portfolio. It is designed to manage the increasing number of DERs, including residential batteries, solar panels and EV chargers.

On Dec. 2, 2024, Itron collaborated with Jemena — a major Australian provider of gas and electricity services. Together, will deploy Itron’s LV DERMS to manage rooftop solar generation, enhance energy system resilience and address the challenges posed by Australia's growing solar penetration.

What Does Our Model Predict for ITRI?

Our proven model does not predict an earnings beat for ITRI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.

ITRI has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combination

Here are some stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings this season.

Trex Company, Inc. (TREX - Free Report) has an Earnings ESP of +20.00% and a Zacks Rank of 2. TREX is set to release quarterly results on Feb. 24. You can see the complete list of today’s Zacks #1 Rank stocks here.

TREX’s long-term earnings growth rate is 11.73%. The Zacks Consensus Estimate for revenues is pegged at $159.2 million, which implies a year-over-year decrease of 18.7%. Shares of TRX plunged 27% in the past year.

TopBuild Corp. (BLD - Free Report) has an Earnings ESP of +1.28% and a Zacks Rank #3. BLD is set to release quarterly results on Feb. 25.

BLD’s long-term earnings growth rate is 7.42%. The Zacks Consensus Estimate for earnings is pegged at $5.08 per share, which implies a year-over-year increase of 8.3%. Shares of BLD plunged 16.1% in the past year.

Dycom Industries, Inc. (DY - Free Report) currently has an Earnings ESP of +4.97% and a Zacks Rank of 2. DY is set to release quarterly results on Feb. 26.

DY’s long-term earnings growth rate is 16.49%. The Zacks Consensus Estimate for earnings is pegged at 91 cents per share, which implies a year-over-year increase of 15.2%. Shares of DY soared 54.4% in the past year.

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