Iteris Reports Q4 Loss, Beats Revenue Expectations

Iteris, Inc. (ITI) posted a loss in the fourth quarter but reported better-than-expected revenue.

Iteris provides software and consulting services for smart mobility infrastructure management, and produces sensors and other devices that record and predict traffic conditions.

The company reported a loss of $0.01 per share compared to earnings of $0.03 per share in the prior-year period.

Total revenue for the quarter increased 10% year-over-year to $31.71 million versus the Street’s estimates of $31.45 million. Revenue from Roadway Sensors grew 9%, while Transportation Systems revenue was up 3%. (See Iteris stock analysis on TipRanks)

On an annual basis, total revenue was up 9% to $117.14 million year-over-year, including Roadway Sensors growth of 15% and Transportation Systems growth of 4%. The company reported earnings of $0.01 per share, compared to a loss of $0.04 per share last year.

Looking ahead, the company projects FY22 total revenue to be in the range of $132 million to $142 million.

Joe Bergera, President, and CEO of Iteris said, “Despite the challenges of COVID-19, our ClearMobility strategy demonstrated measurable operating leverage… Additionally, we made good progress delivering against our ClearMobility roadmap, and the successful acquisition and integration of TrafficCast accelerated the development of Iteris’ ClearMobility Cloud.”

Following the results, Northland Securities analyst Michael Latimore assigned a Buy rating to the stock and lifted the price target to $10 (from $9), which implies 37.4% upside potential to current levels.

Latimore said, “We view Iteris as being uniquely positioned to provide an intelligent transportation PaaS, improving safety and efficiency via better data insights.”

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 2 Buys. The average analyst price target of $10.50 implies 44.6% upside potential to current levels. Shares have gained 50% over the past year.

According to TipRanks’ Smart Score system, Iteris gets a 7 out of 10, which indicates that the stock is likely to perform in line with market averages.

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