Itron Q4 Recap: 4% Topline Decline, Favorable Mix Driven Margin Expansion, New Restructuring Plan & More

Itron, Inc ITRI reported a fourth-quarter FY22 revenue decline of 4% year-on-year to $467.5 million, beating the consensus of $433.6 million.
Device Solutions revenue declined 36% Y/Y to $100.33 million, and Networked Solutions revenue grew by 13.7% Y/Y to $301.11 million. Outcomes revenue increased 3.6% Y/Y to $66.05 million.
Bookings were $898 million driving a book-to-bill ratio of 1.9 to 1. The Q4 backlog was $4.6 billion.
The consolidated gross margin of 30.1% increased by 510 bps, driven by a favorable mix.
Adjusted EPS of $0.71 beat the consensus of $0.09.
Itron used $18 million in free cash flow and held $202 million in cash and equivalents.
The company announced a new restructuring plan to optimize the global supply chain and manufacturing operations and to reduce company overhead.
CEO Tom Deitrich said, "Our fourth quarter results were a step in the right direction. The supply environment remains volatile but is showing signs of improvement."
Outlook: Itron expects Q1 revenue of $460 million - $475 million (consensus $450.96 million) and adjusted EPS of $0.05 - $0.15 (consensus $0.21).
The company expects FY23 revenue of $1.85 billion - $1.95 billion (consensus $1.88 billion) and adjusted EPS of $0.70 - $1.10 (consensus $1.53).
Price Action: ITRI shares traded higher by 1.98% at $55.71 on the last check Monday.

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