NEW YORK (TheStreet) -- Itron(ITRI) - Get Report  stock closed down 0.39% to $35.87 Thursday after Canaccord had reduced its price target to $40 from $42, while maintaining its "hold" rating. 

Itron posted earnings of 36 cents per share for their fourth quarter of 2014.  For their fiscal year of 2014, the technology and services company reported $1.61 per share, lower than analysts' expectations of $1.68 per share.  

Itron reported fourth quarter sales for 2014 at $510.1 million.  Their total 2014 fiscal year sales of $1.97 billion beat analysts' estimates of $1.95 billion.  

Exclusive Report:Jim Cramer's Best Stocks for 2015

For fiscal year 2015, Canaccord lowered their earnings estimates to $1.80 per share from $2 per share, as well as their sales estimate to $1.86 billion from $2 billion. 

Separately, 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 impressive record of earnings per share growth, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • ITRON INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ITRON INC continued to lose money by earning -$0.58 versus -$3.75 in the prior year. This year, the market expects an improvement in earnings ($2.13 versus -$0.58).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 68.1% when compared to the same quarter one year prior, rising from -$154.43 million to -$49.23 million.
  • ITRI, with its decline in revenue, slightly underperformed the industry average of 2.0%. Since the same quarter one year prior, revenues slightly dropped by 2.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for ITRON INC is currently lower than what is desirable, coming in at 32.84%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -9.65% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $16.44 million or 58.43% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • You can view the full analysis from the report here: ITRI Ratings Report