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Itron's Smart Grid Solution to Widen JPS' Metering Services

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Itron, Inc. ITRI has signed a contract with Jamaica Public Service Company (JPS) to unify 670,000 electric meters of the latter through Itron's smart grid network. Jamaica's nationwide smart-grid deployment will extend the utility's smart-meter automation benefits and enhance post-storm restorations.

JPS, which serves more than 600,000 customers, has been transforming its lighting and electricity services for the past few years. This included the deployment of 51,000 electric meters on Itron’s smart grid network in 2016 and 2017, and the rollout of 35,000 smart streetlights in 2017.

Per the new deal, JPS will extend its existing Itron Gen 5 network. Notably, Itron will integrate a real-time smart-grid solution enabling JPS to extend accurate meter reading, revenue protection, drive grid reliability and better manage energy. JPS will utilize Itron’s cloud-based Software-as-a-Service (SaaS) solution to expand its services.

Itron, Inc. Price


Itron, Inc. Price | Itron, Inc. Quote

Itron’s latest deal with JPS has been booked under the newly-formed Networks segment which was created after the Silver Spring Networks acquisition in January 2018. The Networks segment added $86 million revenues to Itron’s total sales during the first quarter. It also added $1.4 billion and $337 million to the total and 12-month backlog, respectively.

Notably, Itron expects strong customer demand for its expanded portfolio of smart networks, software, services, meters and sensors, which will help customers better manage utility and municipal services. Moreover, its mounting contracts will assist backlog strength and in turn, drive the top line.

Share Price Performance

Over the past year, Itron has underperformed the industry with respect to price performance, mainly due to elevated expenses. The stock has lost around 12%, while the industry recorded growth of 16% during the same time frame.

Zacks Rank & Key Picks

Itron currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks in the same sector are Advantest Corp. ATEYY, Analog Devices, Inc. ADI and Aspen Technology, Inc. AZPN. While Advantest sports a Zacks Rank #1 (Strong Buy), Analog Devices and Aspen carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Advantest has a long-term earnings growth rate of 15.5%. The stock has appreciated 40% in a year’s time.

Analog Devices has a long-term earnings growth rate of 12%. The company’s shares have been up 10% during the past year.

Aspen has a long-term earnings growth rate of 10%. Its shares have rallied 57% in the past year.

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