) fourth-quarter 2012 adjusted earnings stood at 58 cents per
share compared with $1.19 in the year-earlier quarter. Adjusted
earnings fell short of the Zacks Consensus Estimate of 64 cents
per share. Including one time items, earnings in the quarter came
in at 40 cents per share compared with the year-ago quarter's
loss of $1.35 per share.
Total revenue during the quarter fell 18.5% to $523 million,
ahead of the Zacks Consensus Estimate of $469 million. The
decline in revenues was mainly due to an unfavorable $9 million
impact from foreign currency translation. Moreover, the Water
segment's higher revenues were offset by lower revenue in the
Energy segment due to the completion of several OpenWay projects
in North America
Cost and Margins
Cost of goods sold declined 20% to $360 million. Gross profit
also dropped 15% to $163 million. However, gross margin expanded
120 basis points to 31.2%. The improvement was driven by lower
warranty costs and manufacturing efficiencies at the Energy
segments, partially offset by the impact of lower volumes and
Adjusted operating expenses increased 5% to $133.9 million in
the quarter. Adjusted operating profit declined 53% to $30.3
million. Including one-time items, operating income was $19.5
million in the reported quarter compared to an operating loss of
$60 million in the year-ago quarter.
Fiscal 2012 Performance
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. Including one-time items,
earnings were $2.71 per share compared with a loss per share of
$12.56 in the prior year. Total revenue during the quarter fell
10.5% to $2178 billion.
As of Dec 31, 2012, Itron had cash and cash equivalents of
$136.4 million compared with $133 million as of Dec 31, 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% as of Dec 31, 2012 from 33.3% as of Dec 31,
During the quarter, Itron repurchased 157,772 shares of its
common stock at an average price of $42.73 per share. The company
has repurchased approximately 2 million shares of Itron common
stock at an average price of $37.96 per share since the inception
of the program, representing 5% of total shares outstanding as of
The company has initiated revenue guidance in the range of
$2.0 billion to $2.1 billion and adjusted EPS guidance of
Liberty Lake, Wash-based Itron Inc., along with its
subsidiaries, is one of the principal technology providers to the
energy and water industries worldwide. It 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 currently has a short-term Zacks #4
National Instruments Corporation
) reported fourth quarter adjusted EPS of 29 cents compared with
27 cents in the year ago quarter.
) reported fourth quarter earnings per share of 49 cents compared
with 42 cents in the prior year quarter.
) reported fourth-quarter 2012 earnings of 7 cents per share
compared with 16 cents per share in the year ago quarter.
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