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Itron (ITRI) Inks Deal With NWL to Implement DTM Solution

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Itron, Inc. ITRI has signed a contract with Network Waitaki Limited (NWL) to deploy the Distribution Transformer Monitoring (DTM) solution of the former. Financial details of the deal remain undisclosed.

NWL is an electricity lines company which distributes electricity from the national grid to consumers' properties in New Zealand. Per the contract, NWL will utilize Itron’s cloud-based Software-as-a-Service (SaaS) applications for operating the DTM solution.

Itron’s DTM solution provides timely and detailed visibility of distribution transformers, facilitating NWL to manage transformer performance and lifecycle based on actual operational conditions. It will also increase NWL’s network awareness, optimize capital investments and improve system reliability.

Itron, Inc. Price, Consensus and EPS Surprise


Itron, Inc. Price, Consensus and EPS Surprise | Itron, Inc. Quote

Itron booked two new contracts after posting first-quarter 2018 results on May 14. Other than the aforementioned deal, the company entered into an agreement with Mississippi Power — a subsidiary of Southern Company SO. Itron will deploy and manage its standards-based Gen5 IPv6 network platform to connect about 193,000 advanced metering infrastructure (AMI) devices to help improve operational efficiencies, and increase grid reliability for Mississippi Power customers.

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.

These contracts will assist Itron’s backlog strength and in turn drive the top line. During the first quarter, the company’s backlog came in at $3.1 billion, which increased a whopping 94% year over year, including the addition of the acquired Networks segment backlog.

Share Price Performance

Over the past year, Itron has underperformed the industry with respect to price performance mainly due to elevated expense. The stock has lost around 4%, while the industry recorded growth of 20% during the same time frame.

Zacks Rank & Key Picks

Itron currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the same sector include Citrix Systems, Inc. CTXS and Nanometrics Incorporated NANO. Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Citrix Systems has a long-term earnings growth rate of 9.1%. The stock has appreciated 28% in a year’s time.

Nanometrics has a long-term earnings growth rate of 12%. The company’s shares have been up 40% during the past year.

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