Itron Inc. ITRI recently announced the completion of the sale of its European commercial & industrial (C&I) mechanical gas meter business, gas stations meter and pressure regulation business and global gas regulator business to Dresser Utility Solutions.
Dresser Utility is a specialized provider of highly engineered infrastructure for critical service applications for natural gas and utility industries. Its products range from metering, electronics, instrumentation to flow control, pressure control and distribution repair products.
The agreement to sell Itron’s global gas regulator and European C&I gas metering and stations businesses was announced in November 2021. As part of the sale, Itron employees supporting the acquired businesses will become employees of Dresser Utility. Itron will continue developing and offering premium communicating electricity, gas, water devices in Europe and worldwide.
The acquisition by Dresser Utility marks an important achievement for both companies. The customers of Itron will benefit from working with a leading provider of highly engineered products for critical infrastructure in the natural gas and global utility sectors, noted Itron.
For Itron, this sale is an important step in its journey toward delivering more augmented networks and data-driven outcomes to cater to customers’ individualized needs more efficiently. Moreover, the takeover will enable the company to enhance its focus on state-of-the-art static, communication-capable assets and outcomes for gas, water and electric utilities.
Promising Prospects for ITRI
Headquartered in Liberty Lake, WA, Itron is one of the prominent suppliers of a wide array of standard, advanced, and smart meters and meter communication systems, including networks and communication modules, sensors, data analytics and services and software, devices, globally.
Itron has been consistently working toward expanding its global presence, taking leverage of reliable and efficient solutions in the utility sector. The company’s cloud-based meter management solution named Temetra is being implemented by Ireland’s electricity distribution network operator — Electricity Supply Board Networks or ESB Networks. Itron’s Temetra will aid ESB Networks to improve meter data management by reading more than 1.75 million meters across its service territory and boosting operational optimization.
The company also inked an agreement with Malaysia-based Sarawak Energy to implement the company’s Industrial Internet of Things (IIoT) solutions.
In November 2021, Itron introduced its first SaaS delivery program model, Itron Smart Pay, in North America. The solution will help utilities make it easier for their customers to manage and pay their energy consumption bills. Prior to that, Itron worked with England-based United Utilities to deploy the Temetra solution to help in achieving operational optimization and boost customer management. In June 2021, Itron implemented a “grid-interactive” water heater program for Fort Collins Utilities to help the utility company lower energy usage.
Itron recently reported mixed fourth-quarter 2021 results, wherein the bottom line surpassed the Zacks Consensus Estimate and the top line missed the same.The company’s quarterly earnings came in at 75 cents per share, beating the Zacks Consensus Estimate of 22 cents per share and improving from the year-ago figure of 65 cents per share. However, revenues came in at $486 million, missing the consensus metric of $536 million and lower than the prior-year figure of $525 million.
At present, Itron carries a Zacks Rank #3 (Hold). Shares of ITRI have dropped 59.5% compared with the industry’s fall of 4.5% in the past year.
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3 Solid Picks
Some better-ranked stocks from the broader technology space include Progress Software PRGS, Badger Meter BMI and Iridium Communications IRDM. While Progress Software and Badger Meter sport a Zacks Rank #1 (Strong Buy), Iridium carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Progress Software has a projected earnings growth rate of 3.62% for fiscal 2022. The Zacks Consensus Estimate for Progress Software’s fiscal 2022 earnings has been revised upward by 6 cents in the past 60 days. The long-term earnings growth rate of the company is pegged at 2%.
Progress Software’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 26.8%. Shares of PRGS have gained 1.1% in the past year.
Badger Meter has a projected earnings growth rate of 5.77% for 2022. The Zacks Consensus Estimate for Badger Meter’s 2022 earnings has been revised upward by 19 cents in the past 60 days.
Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and met estimates once, the average surprise being 14%. Shares of BMI have dropped 5.9% in the past year.
Iridium has a projected earnings growth rate of 271.43% for 2022. The Zacks Consensus Estimate for Iridium’s 2022 earnings has been revised upward by a penny in the past 90 days.
Iridium’s earnings beat the Zacks Consensus Estimate in two of the last four quarters and met estimates twice, the average surprise being 39.4%. Shares of IRDM have dropped 5.6% in the past year.
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