Itron (NASDAQ:ITRI) shares skyrocketed by nearly 15% in the morning session today after the energy and water management solutions provider announced better-than-anticipated numbers for the fourth quarter. Revenue jumped by 23% year-over-year to $577.2 million, surpassing estimates by $7.3 million. Moreover, EPS of $1.23 came in ahead of expectations by a wide margin of $0.48.
For the full year, revenue jumped by 21% to $2.2 billion, and gross profit increased by 37% to $714 million. These fourth-quarter gains were driven by better operational execution and increased customer deliveries, resulting from an improved supply chain scenario. While robust demand for smart water meters and communication modules led to a 13% increase in Device Solutions revenue, increased activity levels resulted in a 30% increase in Networked Solutions revenue. In sync, an uptick in recurring and one-time services led to a 10% jump in Outcomes revenue.
These gains also helped ITRI generate $39 million in free cash flow during the quarter. In contrast, the company’s free cash flow stood at -$18 million in the year-ago period. Itron had a total backlog of $4.5 billion at the end of the quarter.
For Fiscal Year 2024, Itron expects revenue in the range of $2.275 billion to $2.375 billion. EPS for the year is estimated in the range of $3.40 to $3.80. For the upcoming quarter, Itron estimates an EPS of $0.80 to $0.90 on revenue of $575 million to $585 million.
What Is the Target Price for ITRI Stock?
Overall, the Street has a Moderate Buy consensus rating on Itron, and the average ITRI price target of $85 implies the stock may be hovering at fair valuation levels. However, analysts’ views on the stock could see a revision following today’s earnings report.
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