Itron, Inc (ITRI) is set to report fourth-quarter 2023 results on Feb 26.
Expectations are high, with anticipated revenues between $565 million and $575 million, representing a significant 22.1% jump from a year ago, based on the Zacks Consensus Estimate of $570.8 million.
Anticipated non-GAAP earnings per share fall in the range of 70-80 cents, with the Zacks Consensus Estimate set at 75 cents. ITRI’s recent track record is impressive, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 289.3%.
Stock Performance and Expectations
Over the past year, ITRI stock has gained a whopping 36.6%, handily outpacing the sub-industry’s growth of 8.9%.
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Factors Driving ITRI’s Performance
ITRI’s expected top-line expansion can be attributed to robust operational execution, increased shipments, and improved operational efficiencies. The company’s strategic collaborations and frequent product launches are expected to drive growth. Notably, the rise in demand for electric vehicles and distributed energy resource management is anticipated to propel customer bookings.
Moreover, trends in electrification, gas safety, energy transition, grid-edge digitalization, and water efficiency are likely to have contributed to the escalating demand for the company’s solutions. The company continues to witness strong performance across its Device Solutions, Outcomes, and Networked Solutions segments.
Following an outstanding third-quarter performance, ITRI revisited its 2023 guidance, projecting revenues between $2.16 billion and $2.17 billion, with non-GAAP earnings per share estimated in the band of $2.83-$2.93. This reflects a significant positive outlook from the company.
Challenges Ahead
However, rising operating expenses and a leveraged balance sheet amid prevailing weak macroeconomic conditions remain concerns.
Recent Developments
On Feb 20, 2024, ITRI rolled out an enterprise-grade, cloud-based Meter Data Management platform — Itron Enterprise Edition (IEE) Cloud. The new platform is designed to assist utilities in accelerating their digital transformation efforts and offers the flexibility to customize business processes seamlessly.
What Analysts Say
Our proven model predicts an earnings beat for ITRI this time around, with an Earnings ESP of +1.33% and a Zacks Rank #3 (Hold).
Other Stocks to Consider
Other companies, such as Inter Parfums, Inc (IPAR), Wayfair Inc (W), and Floor & Decor Holdings, Inc (FND), also show potential for an earnings beat based on our model.
This quarter, IPAR is scheduled to report fourth-quarter fiscal 2023 earnings on Feb 27, W is set to unveil fourth-quarter 2023 results on Feb 22, and FND is slated to release fourth-quarter 2023 numbers on Feb 22.
It’s crucial for investors to stay updated with upcoming earnings announcements to make informed investment decisions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
