Overview

* Itron ( ITRI ) Q2 revenue of $607 mln missed analyst expectations, per LSEG data

* Adjusted EPS of $1.62 beat analyst estimates, per LSEG data

* Gross margin improved to 36.9% due to product and customer mix

Outlook

* Company expects Q3 revenue between $570 mln and $585 mln

* Itron ( ITRI ) forecasts full-year revenue between $2.35 bln and $2.4 bln

* Company anticipates Q3 non-GAAP EPS between $1.45 and $1.55

* Itron ( ITRI ) sees full-year non-GAAP EPS between $6.00 and $6.20

Result Drivers

* DEVICE SOLUTIONS DECLINE - Revenue decreased 5% due to lower legacy electricity product sales, partially offset by increased water sales

* OUTCOMES REVENUE INCREASE - Outcomes revenue grew 9% driven by increased recurring revenue and software licenses

* GROSS MARGIN IMPROVEMENT - Gross margin rose by 230 basis points due to favorable product and customer mix

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $607 mln $609.90

Revenue mln (8

Analysts

)

Q2 Beat $1.62 $1.33 (8

Adjusted Analysts

EPS )

Q2 EPS $1.47

Q2 Net $68 mln

Income

Q2 $90 mln

Adjusted

EBITDA

Q2 Gross 36.9%

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the electronic equipment & parts peer group is "buy"

* Wall Street's median 12-month price target for Itron Inc ( ITRI ) is $136.50, about 1.4% below its July 30 closing price of $138.42

* The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)