Itron, Inc ITRI is slated to report third-quarter 2024 earnings on Oct. 31.
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The company expects third-quarter revenues to be between $590 million and $600 million. The Zacks Consensus Estimate is pegged at $596.2 million, indicating an increase of 6.3% from a year ago.
Itron, Inc. Price and EPS Surprise
Itron, Inc. price-eps-surprise | Itron, Inc. Quote
Non-GAAP earnings per share are anticipated in the range of $1.10-$1.20. The Zacks Consensus Estimate is pegged at $1.13 per share, up 15.3% year over year. The company reported earnings of 98 cents per share in the year-ago quarter.
ITRI’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 57%. The stock has gained 82.1% in the past year compared with the subindustry’s growth of 23.4%.
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Factors Shaping ITRI’s Q3 Results
Steady market demand along with strong execution and operational discipline remain the primary growth drivers for Itron.
Momentum in the Grid Edge Intelligence platform also 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. The automation of water infrastructure, safety applications for gas customers and the digitalization of its operations are other growth catalysts.
Increased demand for electric vehicles and distributed energy resources is likely to have driven customer bookings.
The Device Solutions segment is likely to have been driven by higher demand for smart water meter and communication module sales. The Outcomes segment has been benefiting from higher recurring services revenues. Networked Solutions’ performance is likely to have been driven by current and new project deployments. We expect revenues from the Device Solutions, Outcomes and Networked Solutions segments to be $111.9 million, $410.7 million and $70.7 million, respectively.
However, rising operating expenses and a leveraged balance sheet amid volatile macroeconomic conditions remain concerns.
Recent Developments
On Oct. 8, 2024, Itron unveiled the Grid Edge Essentials, a leading-edge, pre-integrated solution designed to address the basic problems utilities face at the grid edge. This transformative solution provides end-to-end distribution grid visibility, aids utilities in integrating renewable energy resources, improves consumer engagement and paves the way for more resilient and efficient grid operations.
What Does Our Model Predict for ITRI?
Our proven model does not predict an earnings beat for ITRI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
ITRI has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few stocks that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season.
BlackSky Technology Inc. BKSY currently has an Earnings ESP of +29.51% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
BKSY is scheduled to report quarterly earnings on Nov. 7. The Zacks Consensus Estimate for BKSY’s to-be-reported quarter’s bottom line is pegged at a loss of 61 cents. The consensus estimate for revenues is pegged at $26.9 million. Shares of BKSY have lost 25% in the past year.
Yelp Inc. YELP presently has an Earnings ESP of +15.48% and a Zacks Rank #1. YELP is scheduled to report quarterly numbers on Nov. 7. The Zacks Consensus Estimate for YELP’s to-be-reported quarter’s earnings and revenues is pegged at 40 cents per share and $362.1 million, respectively. Shares of YELP have lost 18.2% in the past year.
Fortinet, Inc. FTNT has an Earnings ESP of +1.25% and a Zacks Rank #2 at present. Fortinet is scheduled to report quarterly figures on Nov. 7. The Zacks Consensus Estimate for FTNT’s to-be-reported quarter’s earnings and revenues is pegged at 51 cents per share and $1.48 billion, respectively. Shares of FTNT have increased 38.8% in the past year.
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