Resource management provider Itron (NASDAQ: ITRI) will be reporting earnings this Tuesday before the bell. Here’s what to look for.
Itron beat analysts’ revenue expectations last quarter, reporting revenues of $587 million, down 3.3% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
Is Itron a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Itron’s revenue to decline 6.7% year on year, a deceleration from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Itron has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Itron’s peers in the electrical equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Teledyne delivered year-on-year revenue growth of 9.8%, beating analysts’ expectations by 5.3%, and Badger Meter reported a revenue decline of 6.6%, in line with consensus estimates. Teledyne’s stock price was unchanged after the resultswhile Badger Meter was down 15.5%.
Read our full analysis of Teledyne’s results here and Badger Meter’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the electrical equipment stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.5% on average over the last month. Itron’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $126.70 (compared to the current share price of $84.22).
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