Itron is the IBD Stock Of The Day as it breaks out to highs after an earnings beat-and-raise. Itron stock is benefiting from national infrastructure investments as well.
The company provides hardware and software solutions, as well as services, to help utilities and cities manage energy and water. It helps electric-vehicle fleets manage their business.
Further, it touts opportunities from the 2021 Infrastructure Investment and Jobs Act. Similar policies around the world are helping to drive growth, the company says.
On Thursday, Itron hiked its full-year outlook after stomping past Q2 earnings estimates.
Itron Stock Breakout Comes With Risk
Shares punched up 4.5% to 108.09 in big volume on the stock market today. Itron stock burst out of a cup-with-handle base with a 108.04 buy point, according to MarketSurge pattern recognition. It struck a record high 113.07 intraday before paring gains amid a market retreat.
The relative strength line for Itron stock is trending higher, clearing short-term levels. However, it remains below the consolidation peak as the stock breaks out.
The current pattern is the second third-stage base, so investors should use some caution as Itron shares break out again to fresh highs. A late-stage base tends to reduce the odds of a successful breakout.
Among other favorable technical signs, Itron stock is holding above all the shorter-term and longer-term moving averages.
Shares enjoy five quarters of rising fund ownership, according to IBD Stock Checkup. That includes a 3% increase in the number of funds owning shares in the June quarter.
Itron stock shows a 91 Relative Strength Rating out of a best-possible 99. The RS Rating means that this infrastructure play has outperformed 91% of all stocks in IBD's database over the past year.
Year to date, Itron stock has soared 45%, fueled by an earnings breakaway gap in late February.
Big Itron Earnings Guidance Lift
Shares of Itron boast a 92 Composite Rating out of 99. The Composite Rating combines various technical and fundamental metrics into one easy-to-read score. Itron stock bears a solid 83 EPS Rating.
On Thursday, the company delivered an 86% EPS jump to $1.21 for the second quarter, smashing estimates. Revenue grew 13% to $609.1 million, also ahead of views.
Though robust, earnings growth slowed from a triple-digit-gain in the prior quarter. Sales growth slowed for a third straight quarter, FactSet shows.
The company reported swelling gross margins due to product mix and operational efficiencies.
On Thursday, Itron guided full-year EPS of $4.45-$4.65. At the midpoint, that's a 26% increase vs. the company's prior guidance and a 35% increase vs. 2023. Analysts expected 2024 EPS of $4.02 ahead of Thursday's results, FactSet shows.
Itron recovered in 2023 from an earnings dive the prior year. The company tied improved results to operational execution, improved supply chain and customer awards.
In July, analysts at Roth MKM highlighted Itron's robust backlog over the next few years.
Customers like Eversource Energy lean on Itron to modernize gas and electric grids.
