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Shares of Itron, Inc. ITRI have climbed 49.8% in the past year compared with growth of 7.3% for the industry. Strong demand across the energy and water sectors has been a key driver behind the increasing adoption of Itron's solutions.
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It closed the last session at $108.58, down from its 52-week high of $124.90. Does this recent pullback indicate a buying opportunity? Let us evaluate the pros and cons of ITRI and decide the best course of action for your portfolio.
Growth Drivers
Momentum in Grid Edge Intelligence platform bodes 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. Itron stated that automation of water infrastructure, safety applications for gas customers and the digitalization of its operations were other growth drivers. Management noted that customers are increasingly deploying new digital technology and non-wires grid solutions. This represents a strong opportunity for Itron. The company’s edge intelligent solutions are witnessing increasing uptake.
Also, the acquisition of Elpis Squared expands Grid Edge Intelligence platform solutions. Increased demand for electric vehicles and distributed energy resources is likely to drive customer bookings. Itron’s bookings were $487 million and its backlog amounted to $4 billion at the end of the reported quarter. Bookings in the third quarter included notable utility players like Arkansas Valley Electric Cooperative, CenterPoint Energy and Duke Energy.
These bookings involve the uptake of Itron’s GenX technology, advanced grid intelligence and smart energy solutions, solidifying its competitive position in the expanding utility market. This substantial backlog provides visibility into Itron’s revenue prospects.
Itron, Inc. Price and Consensus
Itron, Inc. price-consensus-chart | Itron, Inc. Quote
Moreover, steady overall market demand remains a growth driver for Itron. Revenues expanded 10% year over year in the last reported quarter, led by demand and strong operational execution amid a challenging macroeconomic environment.
Itron Outlook Shows Promise
Strong demand trends, effective operational performance and the schedule of customer shipments led to an increase in revenue guidance for full-year 2024. Management now projects revenues to be between $2.428 billion and $2.438 billion compared with guidance of $2.385 to $2.415 billion given in July 2024.
Higher revenues are expected to boost earnings as well. Non-GAAP earnings per share (EPS) are currently estimated in the $5.28-$5.38 band compared with $4.45-$4.65 projected in July 2024.