Why Is Itron Stock Trading Up Monday?

Itron, Inc. ITRI reported a fourth-quarter FY23 revenue growth of 23% year-on-year to $577.2 million, beating the consensus of $570.2 million.

Adjusted EPS of $1.23 beat the consensus of $0.75. The stock price climbed after the results.

Device Solutions revenue climbed by 13% Y/Y to $113.54 million, and Networked Solutions revenue grew by 30% Y/Y to $390.92 million. Outcomes revenue increased 10% Y/Y to $72.71 million.

After bookings were $839 million during the fourth quarter, the total backlog at quarter end was $4.5 billion.

The consolidated gross margin of 34.0% increased by 390 bps, driven by a favorable mix.

Itron generated $39 million in free cash flow for the quarter and held $302 million in cash and equivalents as of December 31, 2023.

Tom Deitrich, Itron’s president and CEO, said, “Our operations remained efficient and critical supply availability continued to improve resulting in record quarterly revenue levels for our Networked Solutions and Outcomes segments.”

Outlook: Itron expects first-quarter revenue of $575 million – $585 million (consensus $541.74 million) and adjusted EPS of $0.80 – $0.90 (consensus $0.58).

The company expects fiscal 2024 revenue of $2.275 billion – $2.375 billion (consensus $2.290 billion) and adjusted EPS of $3.40 – $3.80 (consensus $3.12).

Price Action: ITRI shares traded higher by 15.2% at $86.30 on the last check Monday.