NEW YORK (TheStreet) -- Itron Inc (ITRI - Get Report) shares are up 11.9% to $40.32 in trading on Friday following the release of the company's first quarter earnings report.
The company posted quarterly revenues of $475 million, beating analysts estimates of $457.7 million by 3.8%.
Non-GAAP earnings for the quarter were 31 cents, missing analysts estimates by 5 cents. The company attributed the net income miss to "higher net interest and a loss related to the significant devaluation of currencies in certain markets."
TheStreet Ratings team rates ITRON INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ITRON INC (ITRI) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 1.6%. Since the same quarter one year prior, revenues slightly increased by 0.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Despite currently having a low debt-to-equity ratio of 0.45, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.06 is sturdy.
- ITRON INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ITRON INC swung to a loss, reporting -$3.75 versus $2.71 in the prior year. This year, the market expects an improvement in earnings ($1.55 versus -$3.75).
- The gross profit margin for ITRON INC is currently lower than what is desirable, coming in at 34.23%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -29.49% is significantly below that of the industry average.
- Net operating cash flow has decreased to $39.54 million or 41.92% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full analysis from the report here: ITRI Ratings Report