Water management firm Itron misses Q2 revenue estimates

Overview

• Itron Q2 revenue of $607 mln missed analyst expectations, per LSEG data

• Adjusted EPS of $1.62 beat analyst estimates, per LSEG data

• Gross margin improved to 36.9% due to product and customer mix

Outlook

• Company expects Q3 revenue between $570 mln and $585 mln

• Itron forecasts full-year revenue between $2.35 bln and $2.4 bln

• Company anticipates Q3 non-GAAP EPS between $1.45 and $1.55

• Itron sees full-year non-GAAP EPS between $6.00 and $6.20

Result Drivers

• DEVICE SOLUTIONS DECLINE - Revenue decreased 5% due to lower legacy electricity product sales, partially offset by increased water sales

• OUTCOMES REVENUE INCREASE - Outcomes revenue grew 9% driven by increased recurring revenue and software licenses

• GROSS MARGIN IMPROVEMENT - Gross margin rose by 230 basis points due to favorable product and customer mix

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electronic equipment & parts peer group is "buy"

• Wall Street's median 12-month price target for Itron Inc is $136.50, about 1.4% below its July 30 closing price of $138.42

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nGNX90THjv