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Itron Stock Surges 32% Year to Date: Will the Rally Continue?
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Itron’s (ITRI - Free Report) shares have been performing well on the trading front, with a gain of 31.9% year to date (YTD) compared with 16.2% and 2.9% growth of the S&P 500 composite and the sub-industry, respectively.
Solid financial performance is driving the stock’s performance. The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters with an average surprise of 57%.
Closing at $99.65 as of yesterday’s trading session, ITRI stock is currently trading 11.9% below its 52-week high of $113.07, attained on Aug. 1, 2024.
Image Source: Zacks Investment Research
From a valuation perspective, ITRI is trading at a discount. Going by its forward 12-month price-to-earnings ratio, ITRI is trading at a multiple of 21.4, below the industry’s ratio of 24.
ITRI Gains From Encouraging Demand Trends
Steady market demand remains the primary catalyst for Itron. Revenues expanded 13% year over year in the last reported quarter. In addition to continued customer demand and strong operational execution, the conversion of previously constrained revenues aided the top-line growth. Itron’s bookings came in at $447 million and the backlog was $4.1 billion at the end of the reported quarter.
Momentum in the Grid Edge Intelligence platform augurs well. The platform’s growth is being driven by various factors, including data center-related demand growth, reindustrialization and production localization, as well as electrification of transportation and homes. Itron added that automation of water infrastructure, safety applications for gas customers and the digitalization of its operations were other growth drivers.
Also, the acquisition of Elpis Squared expanded the Grid Edge Intelligence platform’s solutions. Management noted that its customers are increasingly deploying new digital technology and non-wires grid solutions. This represents a strong opportunity for ITRI.
Headquartered in Liberty Lake, WA, Itron is one of the leading global suppliers of a wide range of standard, advanced and smart meters and meter communication systems. It also provides networks and communication modules, software, services and sensors for the effective management of electricity, gas and water resources for its consumers.
ITRI Provides Robust Outlook
Itron anticipates 2024 bookings to result in a book-to-bill ratio of at least 1:1.
For the third quarter of 2024, ITRI expects revenues to be between $590 million and $600 million. Non-GAAP EPS is anticipated to be in the range of $1.10-$1.20. The Zacks Consensus Estimate for both top and bottom lines is pegged at $596.4 million and $1.13, respectively.
The company has revised its full-year revenue outlook for 2024. Management now projects revenues to be between $2.385 billion and $2.415 billion compared with earlier guidance of $2.275 billion to $2.375 billion.
Non-GAAP EPS is currently estimated in the $4.45-$4.65 band compared with $3.40-$3.80 projected in February 2024.
Estimates Northward Bound for ITRI
The Zacks Consensus Estimate for ITRI’s 2024 and 2025 revenues is pegged at $2.41 billion and $2.5 billion, respectively, indicating growth of 10.8% and 4% from the year-ago levels.
The consensus estimates for 2024 and 2025 EPS are pegged at $4.59 and $4.79, respectively, indicating a rise of 36.6% and 4.3% from the prior-year actuals.
The figures of consensus mark for 2024 and 2025 EPS have increased 12.5% and 8.4%, respectively, in the past 60 days, reflecting analysts’ optimism.
ITRI’s long-term earnings growth rate is pegged at 26%.
ITRI Faces Certain Headwinds
Rising operating expenses and stiff competition amid a soft macroeconomic backdrop remain concerns for this Zacks Rank #3 (Hold) company.
In the second quarter of 2024, non-GAAP operating expenses of $141.1 million jumped 6.6% year over year due to higher sales and general and administrative costs. These factors might exert pressure on the margins, at least in the near term.
Itron also has a leveraged balance sheet. As of June 30, 2024, the company’s cash and cash equivalents totaled $920.6 million. Long-term debt at the end of second-quarter 2024 was $1.24 billion.
The Zacks Consensus Estimate for MANH’s 2024 EPS is pegged at $4.26, unchanged in the past 30 days. MANH’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 26.6%. The stock has surged 34.3% in the past year.
The Zacks Consensus Estimate for Adobe’s fiscal 2024 EPS is pegged at $18.16, unchanged in the past 30 days. ADBE’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 2.7%. The long-term earnings growth rate is 13%. Its shares have gained 4.8% in the past year.
The Zacks Consensus Estimate for ANSS’ 2024 earnings is pegged at $9.96, unchanged in the past 30 days. ANSS’ earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing the mark once, with the average surprise being 4.8%. Its shares have gained 1.9% in the past year.
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Itron Stock Surges 32% Year to Date: Will the Rally Continue?
Itron’s (ITRI - Free Report) shares have been performing well on the trading front, with a gain of 31.9% year to date (YTD) compared with 16.2% and 2.9% growth of the S&P 500 composite and the sub-industry, respectively.
Solid financial performance is driving the stock’s performance. The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters with an average surprise of 57%.
Closing at $99.65 as of yesterday’s trading session, ITRI stock is currently trading 11.9% below its 52-week high of $113.07, attained on Aug. 1, 2024.
Image Source: Zacks Investment Research
From a valuation perspective, ITRI is trading at a discount. Going by its forward 12-month price-to-earnings ratio, ITRI is trading at a multiple of 21.4, below the industry’s ratio of 24.
ITRI Gains From Encouraging Demand Trends
Steady market demand remains the primary catalyst for Itron. Revenues expanded 13% year over year in the last reported quarter. In addition to continued customer demand and strong operational execution, the conversion of previously constrained revenues aided the top-line growth. Itron’s bookings came in at $447 million and the backlog was $4.1 billion at the end of the reported quarter.
Momentum in the Grid Edge Intelligence platform augurs well. The platform’s growth is being driven by various factors, including data center-related demand growth, reindustrialization and production localization, as well as electrification of transportation and homes. Itron added that automation of water infrastructure, safety applications for gas customers and the digitalization of its operations were other growth drivers.
Also, the acquisition of Elpis Squared expanded the Grid Edge Intelligence platform’s solutions. Management noted that its customers are increasingly deploying new digital technology and non-wires grid solutions. This represents a strong opportunity for ITRI.
Headquartered in Liberty Lake, WA, Itron is one of the leading global suppliers of a wide range of standard, advanced and smart meters and meter communication systems. It also provides networks and communication modules, software, services and sensors for the effective management of electricity, gas and water resources for its consumers.
ITRI Provides Robust Outlook
Itron anticipates 2024 bookings to result in a book-to-bill ratio of at least 1:1.
For the third quarter of 2024, ITRI expects revenues to be between $590 million and $600 million. Non-GAAP EPS is anticipated to be in the range of $1.10-$1.20. The Zacks Consensus Estimate for both top and bottom lines is pegged at $596.4 million and $1.13, respectively.
The company has revised its full-year revenue outlook for 2024. Management now projects revenues to be between $2.385 billion and $2.415 billion compared with earlier guidance of $2.275 billion to $2.375 billion.
Non-GAAP EPS is currently estimated in the $4.45-$4.65 band compared with $3.40-$3.80 projected in February 2024.
Estimates Northward Bound for ITRI
The Zacks Consensus Estimate for ITRI’s 2024 and 2025 revenues is pegged at $2.41 billion and $2.5 billion, respectively, indicating growth of 10.8% and 4% from the year-ago levels.
The consensus estimates for 2024 and 2025 EPS are pegged at $4.59 and $4.79, respectively, indicating a rise of 36.6% and 4.3% from the prior-year actuals.
The figures of consensus mark for 2024 and 2025 EPS have increased 12.5% and 8.4%, respectively, in the past 60 days, reflecting analysts’ optimism.
ITRI’s long-term earnings growth rate is pegged at 26%.
ITRI Faces Certain Headwinds
Rising operating expenses and stiff competition amid a soft macroeconomic backdrop remain concerns for this Zacks Rank #3 (Hold) company.
In the second quarter of 2024, non-GAAP operating expenses of $141.1 million jumped 6.6% year over year due to higher sales and general and administrative costs. These factors might exert pressure on the margins, at least in the near term.
Itron also has a leveraged balance sheet. As of June 30, 2024, the company’s cash and cash equivalents totaled $920.6 million. Long-term debt at the end of second-quarter 2024 was $1.24 billion.
Stocks to Consider
Some better-ranked stocks worth consideration in the broader technology space are Manhattan Associates (MANH - Free Report) , Adobe (ADBE - Free Report) and ANSYS (ANSS - Free Report) . While Manhattan Associates sports a Zacks Rank #1 (Strong Buy), Adobe and ANSYS carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MANH’s 2024 EPS is pegged at $4.26, unchanged in the past 30 days. MANH’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 26.6%. The stock has surged 34.3% in the past year.
The Zacks Consensus Estimate for Adobe’s fiscal 2024 EPS is pegged at $18.16, unchanged in the past 30 days. ADBE’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 2.7%. The long-term earnings growth rate is 13%. Its shares have gained 4.8% in the past year.
The Zacks Consensus Estimate for ANSS’ 2024 earnings is pegged at $9.96, unchanged in the past 30 days. ANSS’ earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing the mark once, with the average surprise being 4.8%. Its shares have gained 1.9% in the past year.