Itron, Inc. (ITRI) has signed a four-year contract to supply up to 100,000 water meters per year to Evides Waterbedrijf. Itron’s shares gained 0.25% and closed at $39.58 on Aug 13, a day after the announcement.
Evides Waterbedrijf, which supplies drinking water to 2.5 million customers in the Western Netherlands will use Itron’s advanced metering infrastructure (:AMI)-ready volumetric water meters to modernize water system. The metering solution will enable Evides to track and use water resources more efficiently.
Itron’s AMI solution for water has been designed to reliably collect water consumption data and transform that data into valuable and actionable intelligence for users. In addition, these AMI solutions connect customers with their own usage and profile data.
Itron’s AMI solution integrates most billing systems, as well as other data systems, including GIS, SCADA, work order management and hydraulic load modeling software. Itron’s solutions leverage new and evolving technologies and services to solve critical challenges and drive additional business value.
Evides has selected Itron’s water meters as it has prior experience with its accurate and reliable technologies. These high-quality residential meters designed for long-term performance and reliability will help Evides maximize revenue collection through managed water delivery to residential customers.
Itron's growth mainly depends on leveraging smart technologies and data expertise through innovative new software and services which will help in increasing payback opportunities for utilities to deploy smart systems, by helping them to unlock more value from the data.
Sales for Itron's Water Segment improved 14% year over year in the second-quarter 2014. Itron is well positioned to benefit from its Water segment which is performing very well along with displaying prospects of betterment in the future.
Moreover, a strong backlog, new contracts, flexible business operations and expansion in emerging markets are likely to drive long-term growth. However, the Electricity business is operating in a challenging environment and remains a matter of concern.
Liberty Lake, WA-based Itron Inc., along with its subsidiaries, is one of the principal technology providers to energy and water industries worldwide. It produces electricity, gas, water and heat meters, data collection and utility software solutions as well as various other associated metering products. The company provides its services to residential, commercial and industrial customers, along with transmission and distribution customers.
Itron currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the electrical test equipment sector include Ametek Inc. (AME), Cognex Corp. (CGNX) and National Instruments Corp. (NATI). All these stocks carry a Zacks Rank #2 (Buy).