Itron (ITRI) Earnings And Revenues Surpass Estimates In Q1
Zacks Investment Research | May 07, 2019 09:34PM ET
Itron, Inc. (NASDAQ:ITRI) delivered first-quarter 2019 non-GAAP earnings of 70 cents per share beating the Zacks Consensus Estimate by 27 cents. The figure improved significantly from 13 cents in the year-ago quarter but declined from 88 cents in the previous quarter.
Revenues came in $614.58 million, which grew 1.2% from the year-ago quarter and 4.7% sequentially. The figure surpassed the Zacks Consensus Estimate of $590 million.
The top line was driven by robust performance of network solution segment of the company. Further, strong customer demand remained a major positive. Additionally, strengthening supply chain environment contributed to the first-quarter results.
Product and services revenues accounted for 88.7% and 11.3% of total revenues. While product revenues improved 1.4% from the year-ago quarter, services revenues declined 0.5%.
Following the better-than-expected first-quarter results, shares of the company have risen 21.4%. Coming to one year price performance, shares of Itron have lost 3.5% against the Itron, Inc. Quote
Operating Details
For the first quarter, Itron’s gross margin was 30.5%, which expanded 90 bps from the prior-year quarter. This can be attributed to favorable product mix and robust higher-margin software sales.
Non-GAAP operating expenses were $130.6 million, down 14.1% year over year. This decrease resulted from strong restructuring and integration initiatives.
Non-GAAP operating margin came in 9.2%, expanding significantly 460 bps from the year-ago quarter. This was driven by robust Networked Solutions and Outcomes segments.
Balance Sheet and Cash Flows
As of Mar 31, 2019, cash and cash equivalents totaled $110.8 million compared with $120.2 million as of Dec 31, 2018. Accounts receivables were $473.1 million, increasing from $437.2 million in the previous quarter.
Itron generated $24.9 million cash from operations compared with $42.4 million generated in the previous quarter.
Moreover, the company generated free cash flow of $13.5 million, up from $24.9 million in prior quarter.
Guidance
For second-quarter 2019, management expects earnings and revenues to be flat or slightly down on a sequential basis.
Zacks Rank and Stocks to Consider
Itron currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Ciena Corporation (NYSE:CIEN) , ACI Worldwide, Inc. (NASDAQ:ACIW) and Agilent Technologies, Inc. (NYSE:A) . While Ciena and ACI Worldwide sport a Zacks Rank #1 (Strong Buy), Agilent carries a Zacks Rank #2 (Buy). You can see Zacks Investment Research
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