Itron's Return on Invested Capital Insights

Benzinga Pro data, Itron (NASDAQ:ITRI) reported Q4 sales of $485.64 million. Earnings fell to a loss of $58.42 million, resulting in a 5684.46% decrease from last quarter. In Q3, Itron brought in $486.95 million in sales but lost $1.01 million in earnings.

Why Is ROIC Significant?

Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q4, Itron posted an ROIC of 0.45%.

Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q4, Itron posted an ROIC of 0.45%.

Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

For Itron, the positive return on invested capital ratio of 0.45% suggests that management is allocating their capital effectively. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns.

Upcoming Earnings Estimate

Itron reported Q4 earnings per share at $0.75/share, which beat analyst predictions of $0.19/share.

This article was generated by Benzinga's automated content engine and reviewed by an editor.