The Board of
) has sanctioned a new share repurchase program of up to $50
million. Itron intends to complete the share repurchase program
during the next twelve months through the open market or
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The repurchase program, effective immediately, is in line with
Itron's commitment to return wealth to shareholders and reflects
its long-term growth potential and strong financial profile. In
Feb 2013, Itron completed the previous share repurchase program
of 2 million shares for $77 million.
In February 2013, Itron reported adjusted earnings per share of
$3.62 in 2012 compared with $4.19 in 2011. Adjusted earnings
lagged the Zacks Consensus Estimate of $2.38 per share. Total
revenue during the year fell 10.5% to $2.178 billion.
Itron had cash and cash equivalents of $136.4 million in 2012
compared with $133 million in 2011. Cash from operations
decreased to $205 million in 2012 from $252 million in the prior
year. The debt-to-capitalization ratio improved to 29.6% from
33.3% in 2011. The company has initiated revenue guidance in the
range of $2.0 billion to $2.1 billion and adjusted EPS guidance
of $3.00-$3.25 for 2013.
Restructuring program of Itron's manufacturing operations
comprising project closure, consolidation of several
manufacturing facilities and curtailment of global workforce will
have positive impact on earnings. Concurrently, the acquisition
of SmartSynch will enable Itron to strengthen its position in the
integrated cellular network market and provide the customers with
wider choice across the spectrum of smart metering although, the
completion of the OpenWay projects is expected to impact revenues
negatively in the next few quarters.
Liberty Lake, Wash-based Itron Inc. produces electricity, gas,
water, and heat meters, data collection and utility software
solutions along with various other associated metering products
for residential, commercial and industrial, and transmission and
distribution customers. Itron's peers in the same industry are
National Instruments Corporation
Agilent Technologies Inc.
Itron currently retains a Zacks Rank #5 (Strong Sell).