JPMorgan has revised its price target for Itron (ITRI, Financial), increasing it from $118 to $128 while maintaining a Neutral rating on the stock. This adjustment comes as part of a preview for the second quarter within the clean energy sector. Despite strong power demand and the enactment of significant legislation, the short-term forecast for utility-scale renewable energy remains unclear. JPMorgan analysts highlight that an Executive Order issued on July 7, which tasks the Treasury Department with reassessing safe harbor guidelines by August 21, may significantly influence the market for utility-scale renewables.
Additionally, JPMorgan notes that new permitting procedures from the Department of Interior could further restrict project visibility in this sector.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for Itron Inc (ITRI, Financial) is $135.80 with a high estimate of $155.00 and a low estimate of $110.00. The average target implies an downside of 0.61% from the current price of $136.63. More detailed estimate data can be found on the Itron Inc (ITRI) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, Itron Inc's (ITRI, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Itron Inc (ITRI, Financial) in one year is $92.28, suggesting a downside of 32.46% from the current price of $136.63. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Itron Inc (ITRI) Summary page.
ITRI Key Business Developments
Release Date: May 01, 2025
- Revenue: $607 million, increased 1% year-over-year.
- Adjusted EBITDA: $88 million, increased 15% with a margin of 14.5%.
- Non-GAAP Earnings Per Share: $1.52, up from $1.24 a year ago.
- Free Cash Flow: $67 million, compared to $34 million a year ago.
- Gross Margin: 35.8%, a quarterly record, up 180 basis points year-over-year.
- GAAP Net Income: $65 million or $1.42 per diluted share, compared to $52 million or $1.12 per share last year.
- Bookings: $530 million, with a book-to-bill ratio of 0.9 to 1.
- Backlog: $4.7 billion at quarter end.
- Device Solutions Revenue: $126 million, gross margin of 30%, operating margin of 24.2%.
- Network Solutions Revenue: $403 million, gross margin of 36.9%, operating margin of 28.8%.
- Outcomes Revenue: $79 million, gross margin of 39.2%, operating margin of 18.2%.
- Total Debt: $1.265 billion, net debt of $142 million.
- Cash and Equivalents: $1.1 billion.
- Second Quarter Revenue Outlook: $605 million to $615 million.
- Second Quarter Non-GAAP EPS Outlook: $1.30 to $1.40 per diluted share.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Itron Inc (ITRI, Financial) reported a strong first quarter with revenue of $607 million, adjusted EBITDA of $88 million, and non-GAAP earnings per share of $1.52.
- The company achieved a record gross margin of 35.8%, driven by favorable product mix and operational efficiencies.
- Itron Inc (ITRI) has a robust backlog of $4.7 billion, with Network Solutions and Outcomes segments representing over 95% of total bookings.
- The company continues to see strong customer demand for its grid edge intelligence platform, enhancing infrastructure agility and reliability.
- Itron Inc (ITRI) reported a significant increase in free cash flow to $67 million, reflecting strong operational earnings growth and improved working capital.
Negative Points
- Bookings for the first quarter were $530 million, resulting in a book-to-bill ratio of 0.9, which may indicate a potential slowdown in future revenue growth.
- The tariff environment remains dynamic, with an estimated EBITDA impact of $15 million for the year, which could affect profitability.
- Device Solutions revenue decreased by 1% year-over-year, indicating potential challenges in this segment.
- The company faces macroeconomic and trade policy uncertainties, which could impact future demand and financial performance.
- Despite strong performance, Itron Inc (ITRI) has not updated its full-year guidance, indicating potential caution regarding future market conditions.
