The 10-second takeaway
For the quarter ended June 30 (Q2), Itron beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped.
Gross margins grew, operating margins increased, and net margins dropped.
Itron booked revenue of $579.1 million. The 20 analysts polled by S&P Capital IQ hoped for revenue of $565.6 million on the same basis. GAAP reported sales were 5.4% lower than the prior-year quarter's $612.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.16. The 23 earnings estimates compiled by S&P Capital IQ anticipated $0.97 per share. GAAP EPS of $0.79 for Q2 were 6.0% lower than the prior-year quarter's $0.84 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.0%, 280 basis points better than the prior-year quarter. Operating margin was 9.3%, 110 basis points better than the prior-year quarter. Net margin was 5.5%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $545.7 million. On the bottom line, the average EPS estimate is $0.94.
Next year's average estimate for revenue is $2.23 billion. The average EPS estimate is $3.84.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 521 members rating the stock outperform and 25 members rating it underperform. Among 117 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 113 give Itron a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Itron is outperform, with an average price target of $48.59.
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