Itron, Inc. Just Recorded A 18% EPS Beat: Here's What Analysts Are Forecasting Next

Shareholders will be ecstatic, with their stake up 23% over the past week following Itron, Inc.'s (NASDAQ:ITRI) latest annual results. Revenues were US$2.2b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$2.11 were also better than expected, beating analyst predictions by 18%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Itron after the latest results.

View our latest analysis for Itron

Taking into account the latest results, the current consensus from Itron's twelve analysts is for revenues of US$2.34b in 2024. This would reflect an okay 7.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 53% to US$3.25. In the lead-up to this report, the analysts had been modelling revenues of US$2.29b and earnings per share (EPS) of US$2.74 in 2024. So it seems there's been a definite increase in optimism about Itron's future following the latest results, with a substantial gain in the earnings per share forecasts in particular.

It will come as no surprise to learn that the analysts have increased their price target for Itron 26% to US$99.90on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Itron at US$108 per share, while the most bearish prices it at US$77.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing stands out from these estimates, which is that Itron is forecast to grow faster in the future than it has in the past, with revenues expected to display 7.6% annualised growth until the end of 2024. If achieved, this would be a much better result than the 5.9% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.3% annually. Not only are Itron's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Itron following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Itron analysts - going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Itron that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.