Itron's Q1 Earnings Ahead: Key Factors Investors Should Watch

Itron, Inc. ITRI is slated to report first-quarter 2025 earnings on May 1, before market open. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) 

The company expects first-quarter revenues to be between $610 million and $620 million. The Zacks Consensus Estimate is pegged at $614.3 million, indicating an increase of 1.8% from a year ago.

Non-GAAP earnings per share are anticipated to be $1.25-$1.35. The Zacks Consensus Estimate is pegged at $1.30 per share. The company reported earnings of $1.24 per share in the year-ago quarter.

ITRI’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 40.8%. The stock has gained 18.4% in the past year against the Zacks Electronics-Testing Equipment industry’s decline of 7.1%.

Factors at Play for ITRI’s Q1 Earnings

Strong customer demand, growing uptake of its grid edge intelligence platform and robust operational execution are likely to have cushioned Itron’s performance in the first quarter. The rollout of smart meters and broader adoption of IoT solutions in utilities are tailwinds, while any slowdown in project deployment or budget constraints by utilities could be headwinds.

A steady pipeline of opportunities focused on grid resiliency, capacity, safety and automation is a major driving force. This momentum is fueled by the proliferating uptake of the grid intelligence platform, which has seen 13.4 million distributed intelligence endpoints shipped and more than 15 million applications licensed at the end of the fourth quarter.

In 2024, Itron booked $2.7 billion in orders, with a book-to-bill ratio of 1.11. Most of the backlog comes from grid-edge intelligence projects in Network Solutions and Outcomes, covering more than 10 million endpoints. Since many bookings came late in the year, most are likely to boost revenues starting in 2025. With utilities planning multi-year infrastructure upgrades, continued strength in bookings is expected to drive top-line growth in the first quarter.

Itron, Inc. Price and EPS Surprise

Itron, Inc. price-eps-surprise | Itron, Inc. Quote

Itron’s three business segments offer cutting-edge solutions for energy and water infrastructure. The Device Solutions segment is likely to have been boosted by strong demand for smart water and electric products. Networked Solutions is building momentum with new projects and major deployments, while the Outcomes unit is benefiting from increased recurring revenue, along with growing services and software sales.

We expect first-quarter revenues from the Device Solutions, Outcomes and Networked Solutions segments to be $127.5 million, $412 million and $72.6 million, up 0.6%, 1.1% and 4.9%, year over year, respectively.

The company continues to expand its unique product portfolio, capitalizing on digital infrastructure, energy transition, smart cities and data-driven utility management. On March 12, it introduced IntelliFLEX, a cutting-edge grid-edge Distributed Energy Resource Management System designed to provide real-time visibility, control and optimization of behind-the-meter DERs. By harnessing Grid-Edge Intelligence, IntelliFLEX helps utilities unlock up to 20% additional capacity in the distribution grid while deferring expensive infrastructure investments.

However, increased spending, high debt load and a weak global macroeconomy are likely to have weighed on Itron's performance.

Key Recent Developments

On April 2, 2025, Itron joined forces with Norwegian utility provider Norgesnett to roll out the first edge computing deployment in the Nordic region. Utilizing Itron’s Grid Edge Intelligence portfolio, which features distributed intelligence (DI)-enabled smart meters, this collaboration marks a major milestone in modernizing the electricity grid.

On March 21, 2025, Itron collaborated with Tesla and Xcel Energy to deploy an advanced virtual power plant in Colorado. This initiative marks a significant milestone in Itron’s ongoing work with Xcel Energy to manage the increasing number of DERs using its Grid Edge Intelligence solutions. The project aims to enhance the management of DERs, maximizing their value and benefits for energy providers and customers alike.

On March 20, 2025, Itron partnered with Microsoft to unveil the power of Gen AI to utilities and cities. The initiative aims to enhance data accessibility, optimize decision-making and improve operational efficiency by integrating Microsoft’s Copilot AI technology into Itron’s Intelligent Edge Operating System.

On March 19, 2025, Itron teamed up with NVIDIA to bring AI-powered solutions to the grid edge, helping utilities and communities improve grid resilience, disaster management, consumer engagement, efficiency and energy security while tackling future challenges. This collaboration merges its GEI with NVIDIA’s AI to deliver real-time, high-quality data for a smarter, more adaptable energy future.

What Does Our Model Predict for ITRI?

Our proven model does not predict an earnings beat for ITRI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.

ITRI has an Earnings ESP of 0.00% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are three stocks you may want to consider, as our model shows that these have the right elements to post an earnings beat in this reporting cycle.

Sprouts Farmers Market, Inc. SFM currently has an Earnings ESP of +0.44% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sprouts Farmers Market is scheduled to report quarterly earnings on April 30. The Zacks Consensus Estimate for SFM’s to-be-reported quarter’s earnings and revenues is pegged at $1.53 per share and $2.19 billion, respectively. Shares of SFM have gained 148.9% in the past year.

Expeditors International of Washington EXPD has an Earnings ESP of +3.76% and a Zacks Rank #3 at present. EXPD is scheduled to report first-quarter 2025 earnings on May 6.  

The Zacks Consensus Estimate for first-quarter 2025 revenues and earnings are pegged at $2.43 billion and $1.30 per share, respectively. EXPD’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, with the average surprise being 11.6%.

Church & Dwight Co. CHD has an Earnings ESP of +0.66% and a Zacks Rank #3 at present. CHD is scheduled to report first-quarter 2025 earnings on May 1.  

The Zacks Consensus Estimate for first-quarter 2025 revenues and earnings are pegged at $1.51 billion and 89 cents per share, respectively. CHD’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, with the average surprise being 9.6%.


 

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This article originally published on Zacks Investment Research (zacks.com).

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