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Dec 31, 2020

Itron Q4 2020 Earnings Report

Itron reported mixed results with revenue decline offset by increased gross margin and operating income, driven by higher-margin software license revenue and lower operating expenses.

Key Takeaways

Itron announced its Q4 and full year 2020 financial results. The company's Q4 revenue was $525 million, a 16% decrease compared to the previous year. GAAP net income for the quarter was $22 million, or $0.53 per diluted share, while non-GAAP diluted earnings per share were $0.65. The company's backlog was $3.3 billion.

Total revenue decreased by 16% to $525 million.

Outcomes revenue increased by 14% due to higher software license revenue.

GAAP operating income increased to $33 million from $29 million in 2019.

Bookings were $973 million with a book to bill ratio of 1.9 to 1.

Total Revenue
$525M
Previous year: $628M
-16.4%
EPS
$0.65
Previous year: $0.72
-9.7%
Total Backlog
$3.3B
Previous year: $3.2B
+3.1%
Total Bookings
$973M
Previous year: $767M
+26.9%
Gross Profit
$149M
Previous year: $177M
-16.1%
Cash and Equivalents
$207M
Previous year: $150M
+38.0%
Free Cash Flow
$29M
Previous year: $28.6M
+1.6%
Total Assets
$2.61B
Previous year: $2.71B
-3.7%

Itron

Itron

Itron Revenue by Segment

Forward Guidance

Itron provided financial guidance for the full year 2021, including revenue between $2.23 and $2.33 billion and non-GAAP diluted EPS between $2.15 and $2.55.

Positive Outlook

  • Revenue between $2.23 and $2.33 billion
  • Non-GAAP diluted EPS between $2.15 and $2.55
  • Guidance assumes an average euro to U.S. dollar foreign currency exchange rate of $1.20 in 2021
  • Diluted weighted average shares outstanding of approximately 41 million for the year
  • Non-GAAP interest expense of $36 million

Challenges Ahead

  • A reconciliation of forward-looking non-GAAP diluted EPS to the GAAP diluted EPS has not been provided
  • Unable to predict with reasonable certainty the potential amount or timing of restructuring and acquisition and integration related expenses and their related tax effects without unreasonable effort
  • Items are uncertain
  • Depend on various factors
  • Could have a material impact on GAAP results for the guidance period

Revenue & Expenses

Visualization of income flow from segment revenue to net income