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Dec 31, 2022

Itron Q4 2022 Earnings Report

Itron's financial performance improved, driven by higher sales in Network Solutions and Outcomes segments and effective cost management.

Key Takeaways

Itron reported a 4% decrease in revenue to $467 million, but achieved GAAP net income of $22 million, or $0.49 per diluted share, compared to a net loss in the prior year. The total backlog reached a record $4.6 billion, indicating strong market demand.

Total revenue decreased by 4% to $467 million, but remained flat excluding foreign currency impacts.

GAAP net income was $22 million, a significant improvement from the prior year's net loss.

Non-GAAP diluted EPS was $0.71, compared to $0.75 in the prior year.

Total backlog reached a record $4.6 billion, driven by strong market demand.

Total Revenue
$467M
Previous year: $486M
-3.7%
EPS
$0.71
Previous year: $0.75
-5.3%
Total Backlog
$4.6B
Previous year: $4B
+15.0%
Total Bookings
$898M
Previous year: $1.1B
-18.4%
Gross Profit
$141M
Previous year: $121M
+16.1%
Cash and Equivalents
$202M
Previous year: $163M
+24.3%
Free Cash Flow
-$18M
Previous year: $6.75M
-366.8%
Total Assets
$2.38B
Previous year: $2.39B
-0.7%

Itron

Itron

Itron Revenue by Segment

Forward Guidance

Itron projects revenue between $1.85 and $1.95 billion and non-GAAP diluted EPS between $0.70 and $1.10 for the full year 2023. For the first quarter of 2023, the company anticipates revenue between $460 and $475 million and non-GAAP diluted EPS between $0.05 and $0.15.

Positive Outlook

  • Projected revenue between $1.85 and $1.95 billion for 2023.
  • Expected non-GAAP diluted EPS between $0.70 and $1.10 for 2023.
  • Anticipated revenue between $460 and $475 million for Q1 2023.
  • Forecasted non-GAAP diluted EPS between $0.05 and $0.15 for Q1 2023.
  • Guidance assumes an average euro to U.S. dollar foreign currency exchange rate of $1.05 in 2023.

Challenges Ahead

  • Guidance is subject to uncertainties in the supply environment.
  • Inability to predict restructuring, acquisition, and integration related expenses.
  • Uncertainty around the potential amount or timing of expenses.
  • Dependence on various factors that could materially impact GAAP results.
  • Potential impact of restructuring plans on achieving estimated cost savings.

Revenue & Expenses

Visualization of income flow from segment revenue to net income