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Why Is Itron (ITRI) Up 3.9% Since the Last Earnings Report?
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A month has gone by since the last earnings report for Itron, Inc. (ITRI - Free Report) . Shares have added about 3.9% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Itron Earnings Top Estimates in Q1, Revenues Down Y/Y
Itron reported adjusted earnings of $0.57 per share in first-quarter 2017, up 30% from $0.44 recorded in the year-ago quarter. Earnings also surpassed the Zacks Consensus Estimate of $0.51 by a margin of around 12%.
Including one-time items, the company reported earnings of $0.40 per share, up 54% from $0.26 witnessed in the prior-year quarter.
Total revenue decreased around 4% year over year to $478 million, but handily beat the Zacks Consensus Estimate of $454 million. Foreign currency exchange rates had an unfavorable impact of around $5 million on revenues. Improvement in the Electricity segment was offset by decline in the Gas and Water segments.
Cost of goods sold went down 4% to $320.4 million from $334.4 million recorded in the year-earlier quarter. Gross profit decreased 3.7% year over year to $157 million. Gross margin advanced 10 basis points (bps) year over year to 33%, driven by favorable product mix, primarily in the Gas segment.
Adjusted operating expenses decreased 8.8% year over year to $119.6 million. Itron posted adjusted operating income of $37.6 million compared with $32 million posted in the year-ago quarter. Operating margin expanded 150 bps to 7.9% in the quarter.
Segment Performance
Electricity Segment: Net sales at the Electricity segment climbed 9.9% year over year to $238.8 million in first-quarter 2017. The segment reported adjusted operating income of $22.7 million, up 32% from $19 million in the year-ago quarter.
Gas Segment: The segment’s sales dropped 10.8% year over year to $124 million. Adjusted operating income came in at $23.6 million, up 23% year over year.
Water Segment: The Water segment reported sales of $114.6 million, down 18.7% from $141 million recorded in the prior-year quarter. The segment reported adjusted operating profit of $10.7 million, plunging 45% from $19.3 million posted in the comparable period last year.
Financial Position
Itron had cash and cash equivalents of $187.9 million at the end of first-quarter 2017 compared with $133.6 million at the end of 2016. The company recorded cash from operations of $63.3 million in the reported quarter compared with $33.8 million recorded in the year-ago quarter.
Bookings and Backlog
Itron had bookings of $424 million in first-quarter 2017. In the reported quarter, backlog came in at $1.6 billion and the 12-month backlog totaled $819 million, up 7% and 4%, respectively, compared with first-quarter 2016.
Itron anticipates that its investment in the OpenWay Riva IoT solution and differentiated software and services offerings, combined with ongoing operational discipline, will drive financial results.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month. There have been two revisions higher for the current quarter
At this time, the stock has a great Growth Score of 'A', though it is lagging a lot on the momentum front with a 'B'. Charting the exact same path, the stock was allocated a grade of 'B' on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is primarily suitable for growth investors while also being suitable for those looking for value and momentum.
Outlook
Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising. Interestingly, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Why Is Itron (ITRI) Up 3.9% Since the Last Earnings Report?
A month has gone by since the last earnings report for Itron, Inc. (ITRI - Free Report) . Shares have added about 3.9% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Itron Earnings Top Estimates in Q1, Revenues Down Y/Y
Itron reported adjusted earnings of $0.57 per share in first-quarter 2017, up 30% from $0.44 recorded in the year-ago quarter. Earnings also surpassed the Zacks Consensus Estimate of $0.51 by a margin of around 12%.
Including one-time items, the company reported earnings of $0.40 per share, up 54% from $0.26 witnessed in the prior-year quarter.
Total revenue decreased around 4% year over year to $478 million, but handily beat the Zacks Consensus Estimate of $454 million. Foreign currency exchange rates had an unfavorable impact of around $5 million on revenues. Improvement in the Electricity segment was offset by decline in the Gas and Water segments.
Cost of goods sold went down 4% to $320.4 million from $334.4 million recorded in the year-earlier quarter. Gross profit decreased 3.7% year over year to $157 million. Gross margin advanced 10 basis points (bps) year over year to 33%, driven by favorable product mix, primarily in the Gas segment.
Adjusted operating expenses decreased 8.8% year over year to $119.6 million. Itron posted adjusted operating income of $37.6 million compared with $32 million posted in the year-ago quarter. Operating margin expanded 150 bps to 7.9% in the quarter.
Segment Performance
Electricity Segment: Net sales at the Electricity segment climbed 9.9% year over year to $238.8 million in first-quarter 2017. The segment reported adjusted operating income of $22.7 million, up 32% from $19 million in the year-ago quarter.
Gas Segment: The segment’s sales dropped 10.8% year over year to $124 million. Adjusted operating income came in at $23.6 million, up 23% year over year.
Water Segment: The Water segment reported sales of $114.6 million, down 18.7% from $141 million recorded in the prior-year quarter. The segment reported adjusted operating profit of $10.7 million, plunging 45% from $19.3 million posted in the comparable period last year.
Financial Position
Itron had cash and cash equivalents of $187.9 million at the end of first-quarter 2017 compared with $133.6 million at the end of 2016. The company recorded cash from operations of $63.3 million in the reported quarter compared with $33.8 million recorded in the year-ago quarter.
Bookings and Backlog
Itron had bookings of $424 million in first-quarter 2017. In the reported quarter, backlog came in at $1.6 billion and the 12-month backlog totaled $819 million, up 7% and 4%, respectively, compared with first-quarter 2016.
Itron anticipates that its investment in the OpenWay Riva IoT solution and differentiated software and services offerings, combined with ongoing operational discipline, will drive financial results.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month. There have been two revisions higher for the current quarter
Itron, Inc. Price and Consensus
Itron, Inc. Price and Consensus | Itron, Inc. Quote
VGM Scores
At this time, the stock has a great Growth Score of 'A', though it is lagging a lot on the momentum front with a 'B'. Charting the exact same path, the stock was allocated a grade of 'B' on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is primarily suitable for growth investors while also being suitable for those looking for value and momentum.
Outlook
Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising. Interestingly, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.