We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Itron (ITRI) to Grow on Cost Saving Efforts; Risks Remain
Read MoreHide Full Article
We issued an updated research report on Itron, Inc. (ITRI - Free Report) on Mar 15, 2017. Though the company will benefit from product development, acquisitions and restructuring strategy, its performance might be affected by negative foreign exchange rates and increased costs.
Itron’s fourth-quarter 2016 adjusted earnings registered a 51% year-over-year rise while revenues remained flat. However, the company beat the Zacks Consensus Estimate on both the counts. Moreover, Itron’s year-end backlog increased by 5% year over year to $1.7 billion. This figure excludes more than $325 million of businesses won and not yet booked by the company. Additionally, Itron announced several notable contracts that will be booked in 2017.
So far this year, the company has been realizing benefits from prior restructuring and cost savings initiatives that commenced in late 2014 as well as investment in growing its business. For 2017, Itron expects adjusted earnings per share to lie between $2.80 and $3.10. The mid-point of the guidance reflects 16% year-over-year growth.
Revenues are projected to range between $1.9 and $2.0 billion, the mid-point of which depicts a 3% decline from 2016. The company expects currency to have a significant unfavorable effect year over year on revenue.
Itron will continue to face temporary redundant costs in product development and general & administrative expense while executing restructuring plans. While these restructuring efforts will result in savings, higher expenses may hurt income in the near term. Increased competition also remains a headwind for the company in the near term.
Nevertheless, Itron expects to grow through a combination of new product development, licensing technology, distribution agreements, partnership arrangements and acquisitions. The company believes that these activities will be funded from existing cash, cash flow from operations, borrowings, or the sale of common stock.
Itron remains focused on its ongoing efforts to drive operational improvements as well as product development and supply chain efficiencies across businesses. Looking ahead, the company is confident that investments in OpenWay Riva IoT solution along with differentiated software and services offerings, combined with on-going operational discipline, will help drive continued growth and profitability.
In the past one year, Itron outperformed the Zacks categorized Electronics Testing Equipment subindustry. The company’s shares gained around 52.9% during this period, compared with roughly 43.6% increase recorded by the industry.
Itron currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the same space include Applied Optoelectronics, Inc. (AAOI - Free Report) , Teradyne, Inc. (TER - Free Report) and Cognex Corporation (CGNX - Free Report) . Applied Optoelectronics has delivered an impressive average positive earnings surprise of 116.49% in the past four quarters and sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Teradyne generated a positive average earnings surprise of 24.85% in the trailing four quarters and flaunts a Zacks Rank #1.
Cognex Corporation has a positive average earnings surprise of 28.40% in the last four quarters and carries a Zacks Rank #2 (Buy).
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.Click to see them right now >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Itron (ITRI) to Grow on Cost Saving Efforts; Risks Remain
We issued an updated research report on Itron, Inc. (ITRI - Free Report) on Mar 15, 2017. Though the company will benefit from product development, acquisitions and restructuring strategy, its performance might be affected by negative foreign exchange rates and increased costs.
Itron’s fourth-quarter 2016 adjusted earnings registered a 51% year-over-year rise while revenues remained flat. However, the company beat the Zacks Consensus Estimate on both the counts. Moreover, Itron’s year-end backlog increased by 5% year over year to $1.7 billion. This figure excludes more than $325 million of businesses won and not yet booked by the company. Additionally, Itron announced several notable contracts that will be booked in 2017.
So far this year, the company has been realizing benefits from prior restructuring and cost savings initiatives that commenced in late 2014 as well as investment in growing its business. For 2017, Itron expects adjusted earnings per share to lie between $2.80 and $3.10. The mid-point of the guidance reflects 16% year-over-year growth.
Revenues are projected to range between $1.9 and $2.0 billion, the mid-point of which depicts a 3% decline from 2016. The company expects currency to have a significant unfavorable effect year over year on revenue.
Itron will continue to face temporary redundant costs in product development and general & administrative expense while executing restructuring plans. While these restructuring efforts will result in savings, higher expenses may hurt income in the near term. Increased competition also remains a headwind for the company in the near term.
Nevertheless, Itron expects to grow through a combination of new product development, licensing technology, distribution agreements, partnership arrangements and acquisitions. The company believes that these activities will be funded from existing cash, cash flow from operations, borrowings, or the sale of common stock.
Itron remains focused on its ongoing efforts to drive operational improvements as well as product development and supply chain efficiencies across businesses. Looking ahead, the company is confident that investments in OpenWay Riva IoT solution along with differentiated software and services offerings, combined with on-going operational discipline, will help drive continued growth and profitability.
In the past one year, Itron outperformed the Zacks categorized Electronics Testing Equipment subindustry. The company’s shares gained around 52.9% during this period, compared with roughly 43.6% increase recorded by the industry.
Itron currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the same space include Applied Optoelectronics, Inc. (AAOI - Free Report) , Teradyne, Inc. (TER - Free Report) and Cognex Corporation (CGNX - Free Report) . Applied Optoelectronics has delivered an impressive average positive earnings surprise of 116.49% in the past four quarters and sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Teradyne generated a positive average earnings surprise of 24.85% in the trailing four quarters and flaunts a Zacks Rank #1.
Cognex Corporation has a positive average earnings surprise of 28.40% in the last four quarters and carries a Zacks Rank #2 (Buy).
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>