Itron Earnings Preview

Itron ITRI unveils its next round of earnings this Monday, May 03. Get prepared with Benzinga's ultimate preview for Itron's Q1 earnings.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts expect Itron earnings of $0.42 per share. Revenue will likely be around $535.25 million, according to the consensus estimate. In the same quarter last year, Itron announced EPS of $0.57 on revenue of $598.41 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Monday, earnings would be down 26.32%. Sales would be down 10.56% from the year-ago period. The company's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of Itron were trading at $91.1 as of April 29. Over the last 52-week period, shares are up 34.25%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Itron is scheduled to hold the call at 10:00:00 ET and can be accessed here.