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Investing.com - JPMorgan raised its price target on Itron (NASDAQ:ITRI) to $145.00 from $128.00 on Friday, while upgrading the smart grid solutions provider to Overweight from Neutral following its second-quarter earnings report. The company, currently valued at $5.68 billion, has seen its stock take a significant hit over the past week, according to InvestingPro data.
The utility technology company reported second-quarter results with gross margin, EBITDA, and earnings per share exceeding expectations, despite revenue coming in line with forecasts. The company maintains a healthy gross margin of 34.82% and generated $333.46 million in EBITDA over the last twelve months. Bookings grew 2% year-over-year with a book-to-bill ratio of 0.75x, consistent with the same period last year.
Itron raised its full-year 2025 earnings guidance but lowered its revenue outlook below the previous range, citing timing delays in backlog deliveries. The company attributed these delays to trade and tariff uncertainty, inflation, project sequencing, and labor constraints, which are primarily affecting lower-margin solutions. InvestingPro analysis shows the company operates with moderate debt levels and maintains strong liquidity, with current assets nearly doubling short-term obligations.
The third-quarter 2025 guidance followed a similar pattern, with stronger-than-expected earnings projections despite lower revenue forecasts. JPMorgan noted that the revenue timing issues are having a larger impact on Itron’s lower-margin solutions, ultimately benefiting the company’s overall product mix.
Itron management expressed confidence that demand remains strong, supported by increasing multi-year customer budgets, and continues to expect a book-to-bill ratio of 1.0x or higher for fiscal year 2025.
In other recent news, Itron Inc. reported its financial results for the second quarter of 2025, showcasing a strong performance in earnings per share (EPS). The company posted an EPS of $1.62, surpassing analyst expectations of $1.32. However, Itron’s revenue for the quarter slightly missed projections, recording $607 million compared to the anticipated $609 million. Despite the earnings beat, the market’s reaction was unfavorable. In addition to the earnings report, there were no significant updates regarding mergers or acquisitions. Analyst firms have not provided recent upgrades or downgrades for Itron. These developments are part of the latest updates concerning Itron Inc.
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