Itron Inc (ITRI) Reports 33% Revenue Increase in Q3 2023
Revenue for Q3 2023 reached $561 million, marking a 33% increase compared to Q3 2022.
Gross profit rose by 56% to $187 million, while GAAP net income increased by $36 million to reach $40 million.
GAAP diluted earnings per share (EPS) and non-GAAP diluted EPS increased by $0.78 and $0.75 per share respectively.
Adjusted EBITDA saw a significant increase of 181% to $68 million.
Released on November 2, 2023, Itron Inc (NASDAQ:ITRI)'s third-quarter financial results show significant growth in key areas. The company, which innovates the way utilities and cities manage energy and water, reported a 33% increase in revenue, reaching $561 million. This growth was attributed to improving supply chain conditions and strong operational execution.
Financial Performance Highlights
Device Solutions revenue increased by 18% due to growth in water meter sales, while Networked Solutions revenue saw a 43% increase due to improved supply conditions. Outcomes revenue also increased by 14% due to an increase in recurring services. The consolidated company gross margin of 33.4% increased by 490 basis points from the prior year due to a favorable product mix and operational efficiencies.
GAAP operating income of $55 million was $48 million higher than the prior year, while non-GAAP operating income of $59 million was $44 million higher than the prior year. Both increases were due to higher gross profit, partially offset by higher operating expenses.
Net Income and Cash Flow
Net income attributable to Itron Inc for the quarter was $40 million, or $0.87 per diluted share, compared with a net income of $4 million, or $0.09 per diluted share in 2022. The increase was driven by higher GAAP operating income, partially offset by higher tax expense. Net cash provided by operating activities was $34 million in the third quarter compared with $15 million in the prior year. Free cash flow was $28 million in the third quarter compared with $11 million in the prior year. The increase in cash flow was due to higher earnings, partially offset by growth in working capital.
Outlook for Q4 2023 and Full Year 2023
For the fourth quarter of 2023, Itron Inc (NASDAQ:ITRI) expects revenue between $565 and $575 million and non-GAAP diluted EPS between $0.70 and $0.80. The company's guidance for the full year 2023 has been updated to revenue between $2.16 to $2.17 billion and non-GAAP diluted EPS between $2.83 to $2.93.
Tom Deitrich, Itrons president and CEO, commented on the results,
Our third quarter results demonstrate broad-based and strong team execution on customer deliveries that drove acceleration in revenue, gross margin, EBITDA, EPS, and cash flow."
He further added,
Our investments in new solutions directly address these critical customer needs and are delivering returns as our third quarter results demonstrate."
Explore the complete 8-K earnings release (here) from Itron Inc for further details.
This article first appeared on GuruFocus.
