Itron, Inc ITRI is slated to report third-quarter 2024 earnings on Oct. 31.

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The company expects third-quarter revenues to be between $590 million and $600 million. The Zacks Consensus Estimate is pegged at $596.2 million, indicating an increase of 6.3% from a year ago.

Itron, Inc. Price and EPS Surprise

Itron, Inc. price-eps-surprise | Itron, Inc. Quote

Non-GAAP earnings per share are anticipated in the range of $1.10-$1.20. The Zacks Consensus Estimate is pegged at $1.13 per share, up 15.3% year over year. The company reported earnings of 98 cents per share in the year-ago quarter.

ITRI’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 57%. The stock has gained 82.1% in the past year compared with the subindustry’s growth of 23.4%.

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Factors Shaping ITRI’s Q3 Results

Steady market demand along with strong execution and operational discipline remain the primary growth drivers for Itron. 

Momentum in the Grid Edge Intelligence platform also 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. The automation of water infrastructure, safety applications for gas customers and the digitalization of its operations are other growth catalysts. 

Increased demand for electric vehicles and distributed energy resources is likely to have driven customer bookings.

The Device Solutions segment is likely to have been driven by higher demand for smart water meter and communication module sales. The Outcomes segment has been benefiting from higher recurring services revenues. Networked Solutions’ performance is likely to have been driven by current and new project deployments. We expect revenues from the Device Solutions, Outcomes and Networked Solutions segments to be $111.9 million, $410.7 million and $70.7 million, respectively. 

However, rising operating expenses and a leveraged balance sheet amid volatile macroeconomic conditions remain concerns.

Recent Developments

On Oct. 8, 2024, Itron unveiled the Grid Edge Essentials, a leading-edge, pre-integrated solution designed to address the basic problems utilities face at the grid edge. This transformative solution provides end-to-end distribution grid visibility, aids utilities in integrating renewable energy resources, improves consumer engagement and paves the way for more resilient and efficient grid operations.