Itron, Inc. (NASDAQ:ITRI) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Itron, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 50% to $0.58 in the quarter versus EPS of $1.16 in the year-earlier quarter.
Revenue: Decreased 16.77% to $482 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Itron, Inc. reported adjusted EPS income of $0.58 per share. By that measure, the company met the mean analyst estimate of $0.58. It missed the average revenue estimate of $485.16 million.
Quoting Management: “Our second quarter results improved over first quarter in nearly every metric,” said Philip Mezey, Itron’s president and chief executive officer. “We were encouraged by the revenue growth in our core electricity business and improved total gross margin. In addition, our bookings increased 15 percent year-over-year to the highest level in six quarters. We expect our results to strengthen further in the second half of this year and we will continue to focus on lowering our costs to drive additional earnings leverage in our business.”
Key Stats (on next page)…
EPS increased 87.1% from $0.31 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.82 and has not changed. For the current year, the average estimate has moved down from a profit of $2.83 to a profit of $2.80 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)