The 10-second takeaway
For the quarter ended March 31 (Q1), Itron missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share shrank significantly. GAAP earnings per share dropped significantly.
Margins dropped across the board.
Itron notched revenue of $447.5 million. The 16 analysts polled by S&P Capital IQ wanted to see a top line of $466.6 million on the same basis. GAAP reported sales were 22% lower than the prior-year quarter's $571.6 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 $0.31. The 17 earnings estimates compiled by S&P Capital IQ anticipated $0.45 per share. Non-GAAP EPS of $0.31 for Q1 were 66% lower than the prior-year quarter's $0.91 per share. GAAP EPS of $0.06 for Q1 were 90% lower than the prior-year quarter's $0.63 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 31.3%, 70 basis points worse than the prior-year quarter. Operating margin was 0.8%, 630 basis points worse than the prior-year quarter. Net margin was 0.6%, 380 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $504.3 million. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $2.06 billion. The average EPS estimate is $3.09.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 515 members out of 539 rating the stock outperform, and 24 members rating it underperform. Among 120 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 113 give Itron a green thumbs-up, and seven 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 $47.57.
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