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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.