The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Itron missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share grew.
Margins expanded across the board.
Itron reported revenue of $504.1 million. The 19 analysts polled by S&P Capital IQ predicted sales of $524.1 million on the same basis. GAAP reported sales were 18% lower than the prior-year quarter's $615.6 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 $0.97. The 22 earnings estimates compiled by S&P Capital IQ predicted $0.93 per share. GAAP EPS were $0.89 for Q3 compared to -$12.70 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.1%, 550 basis points better than the prior-year quarter. Operating margin was 8.1%, 90 basis points better than the prior-year quarter. Net margin was 7.0%, 9,100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $497.0 million. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $2.17 billion. The average EPS estimate is $3.75.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 517 members out of 542 rating the stock outperform, and 25 members rating it underperform. Among 129 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 125 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 $49.34.
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