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Itron (ITRI) Surges 63% in a Year: Will the Trend Continue?

Itron ITRI is continuing its upward trajectory, with a gain of 63.2% in the past year compared with the S&P 500 Composite and sub-industry’s growth of 17.9% and 26.5%, respectively.

Headquartered in Liberty Lake, WA, Itron is one of the leading global suppliers of a wide range of standard, advanced and smart meters, and meter communication systems. It also provides networks and communication modules, software, services and sensors for the effective management of electricity, gas and water resources for consumers.

With healthy fundamentals and strong growth opportunities, this Zacks Rank #1 (Strong Buy) stock appears to be a solid investment option at the moment.

Apart from a favorable rank, ITRI has a Growth Score of B. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 or 2 (Buy) and a Growth Score of A or B offer solid investment opportunities.

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Zacks Investment Research

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Factors Driving Growth

Itron's performance is gaining from higher recurring and one-time service revenues, improved component supply and sales of water meter, and communication module sales.

Management recently reported robust first quarter 2024 results. Non-GAAP earnings per share (EPS) came in at $1.24, which surpassed the Zacks Consensus Estimate by 45.9%. The company reported EPS of 49 cents in the prior-year quarter.

Revenues of $603 million beat the Zacks Consensus Estimate by 4.1%. The top line improved 22% (up 22% at constant currency) year over year.

The top-line performance was driven by strong operational execution and robust demand trends across all business segments. Management also noted that growth was backed by conversion of previously constrained revenues. It had nearly $125 million of constrained revenues at the beginning of 2024. More than half of this amount was fulfilled in the first quarter.

Product revenues were $527.8 million (87.5% of total revenues), up 26.8% year over year.

Bookings were $361 million and backlog amounted to $4.3 billion at the end of the reported quarter. ITRI continues to anticipate 2024 bookings to result in a book to bill ratio of at least 1:1.

Momentum in the Grid Edge Intelligence platform augurs 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 added that automation of water infrastructure, safety applications for gas customers and the digitalization of their operations were other growth drivers.

Also, the acquisition of Elpis Squared expands the Grid Edge Intelligence platform’s solutions. Management noted that customers are increasingly deploying new digital technology and non-wires grid solutions. This represents a strong opportunity for Itron. Increased demand for electric vehicles and distributed energy resource is likely to drive customer bookings.

For the second quarter of 2024, ITRI expects revenues to be between $595 million and $605 million. Non-GAAP EPS is anticipated in the range of 90 cents-$1.00.

Rising operating expenses coupled with a leveraged balance sheet remain major headwinds. Uncertainty prevailing over global macroeconomic conditions, as well as volatile supply-chain dynamics, remain concerning.

A Look at Estimates

The Zacks Consensus Estimate for ITRI’s 2024 and 2025 revenues is pegged at $2.36 billion and $2.49 billion, indicating growth of 8.5% and 5.5% from the year-ago levels, respectively.

The consensus estimate for fiscal 2024 and 2025 EPS is expected to rise 16% and 12% from the prior-year actuals to $3.90 and $4.37, respectively.

The consensus mark for fiscal 2024 and 2025 EPS has increased 8% and 2.8%, respectively, in the past 60 days, reflecting analysts’ optimism.

ITRI’s long-term earnings growth rate is pegged at 26%.

Other Stocks to Consider

Some other top-ranked stocks worth consideration in the broader technology space are Badger Meter BMI, Oracle ORCL and The Descartes Systems Group Inc DSGX. While BMI sports a Zacks Rank #1, ORCL and DSGX carry a Zacks Rank of 2 each, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for BMI’s 2024 EPS is pegged at $3.89, up 9.9% in the past 60 days. BMI’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 12.7%. The long-term earnings growth rate is 15.6%. Shares of BMI have risen 40% in the past year.


The Zacks Consensus Estimate for Oracle’s fiscal 2025 EPS is pegged at $6.15. The long-term earnings growth rate is 11.2%. Oracle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 3.6%. Shares of ORCL have risen 21.3% in the past year.

The Zacks Consensus Estimate for Descartes’ fiscal 2025 EPS has increased 1.2% in the past 60 days to $1.69. Descartes earnings beat the Zacks Consensus Estimate in two of the last four quarters, while missing in the remaining two quarters, the average surprise being 5.1%. Shares of DSGX have risen 25.1% in the past year.

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