Why Itron Shares Got Crushed

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Itron (NASDAQ: ITRI  ) got crushed today by as much as 12% after the company reported weaker-than-expected earnings.

So what: Revenue during the fourth quarter added up to $523 million, with non-GAAP earnings per share of $0.58. The fact that sales toppled the consensus estimate of $472.9 million was little consolation for the notable miss on the bottom-line result, since investors were expecting a profit of $0.66 per share.

Now what: It gets worse. Guidance calls for full-year sales of $2 billion to $2.1 billion, which should translate into adjusted earnings per share of just $3.00 to $3.25. That hardly compares to the $3.66 per share profit that analysts were modeling for. As a result, the stock has received numerous downgrades today from analysts, including J.P. Morgan, Brean Capital, and Needham.

Interested in more info on Itron? Add it to your watchlist by clicking here.

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