The 10-second takeaway
For the quarter ended June 30 (Q2), Itron met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share shrank significantly.
Margins contracted across the board.
Itron reported revenue of $482.2 million. The 13 analysts polled by S&P Capital IQ hoped for net sales of $484.3 million on the same basis. GAAP reported sales were 17% lower than the prior-year quarter's $579.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.58. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.58 per share. Non-GAAP EPS of $0.58 for Q2 were 50% lower than the prior-year quarter's $1.16 per share. GAAP EPS of $0.31 for Q2 were 61% lower than the prior-year quarter's $0.79 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 33.1%, 90 basis points worse than the prior-year quarter. Operating margin was 4.4%, 500 basis points worse than the prior-year quarter. Net margin was 2.6%, 290 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $515.3 million. On the bottom line, the average EPS estimate is $0.82.
Next year's average estimate for revenue is $2.01 billion. The average EPS estimate is $2.79.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 510 members out of 532 rating the stock outperform, and 22 members rating it underperform. Among 125 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 118 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 $45.77.
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