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Sep 30, 2022

Itron Q3 2022 Earnings Report

Itron's revenue decreased due to strategic sale of product lines and component shortages, but backlog reached record levels.

Key Takeaways

Itron reported a revenue decrease of 14% to $421 million, impacted by strategic sales and component shortages. Despite these challenges, the company's backlog reached a new record, driven by strong market demand and robust bookings. GAAP net income was $4 million, or $0.09 per diluted share, compared to a loss in the prior year.

Revenue decreased 14% to $421 million due to strategic sales and component shortages.

GAAP net income was $4 million, or $0.09 per diluted share, an increase compared to the prior year loss.

Non-GAAP diluted EPS was $0.23, compared to $0.21 in the prior year.

Total backlog reached $4.2 billion, a record level driven by strong market demand.

Total Revenue
$421M
Previous year: $487M
-13.6%
EPS
$0.23
Previous year: $0.21
+9.5%
Total Backlog
$4.2B
Previous year: $3.4B
+23.5%
Total Bookings
$578M
Gross Profit
$120M
Previous year: $135M
-11.0%
Cash and Equivalents
$215M
Previous year: $189M
+14.2%
Free Cash Flow
$11M
Previous year: $11M
+0.0%
Total Assets
$2.32B
Previous year: $2.42B
-4.4%

Itron

Itron

Forward Guidance

Itron anticipates a volatile supply environment to continue in the fourth quarter of 2022, with revenue expected to be in the range of $420 million to $460 million and non-GAAP EPS between $0.00 and $0.15.

Positive Outlook

  • Revenue expected between $420 million and $460 million.
  • Non-GAAP EPS expected between $0.00 and $0.15.
  • Cautiously optimistic about supply availability improving over time.
  • Strong market demand is expected to continue.
  • Backlog remains at record levels.

Challenges Ahead

  • Volatile supply environment is expected to continue.
  • Anticipates supplier decommitments.
  • Component deliveries below expectations.
  • Non-linear timing of key components arriving at factories.
  • Lower than expected company results.