The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Itron beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share expanded.
Gross margins grew, operating margins shrank, net margins increased.
Itron reported revenue of $523.3 million. The 17 analysts polled by S&P Capital IQ expected to see revenue of $471.1 million on the same basis. GAAP reported sales were 19% lower than the prior-year quarter's $642.5 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 $0.58. The 20 earnings estimates compiled by S&P Capital IQ forecast $0.66 per share. GAAP EPS were $0.40 for Q4 compared to -$1.35 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 31.2%, 140 basis points better than the prior-year quarter. Operating margin was 3.4%, 430 basis points worse than the prior-year quarter. Net margin was 3.0%, 1,150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $484.2 million. On the bottom line, the average EPS estimate is $0.72.
Next year's average estimate for revenue is $2.06 billion. The average EPS estimate is $3.65.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 517 members out of 540 rating the stock outperform, and 23 members rating it underperform. Among 143 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 137 give Itron a green thumbs-up, and six 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 $47.45.
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