Itron’s third quarter was marked by a sharp market reaction, as shares fell significantly following results that showed both declining sales and lower-than-expected bookings. Management attributed the top-line weakness to the timing of large utility project deployments and a planned reduction in legacy product lines, particularly within the Device Solutions and Network Solutions segments. CEO Thomas Deitrich highlighted that “utilities are operating in an increasingly complex environment,” driving some customers to extend project timelines amid regulatory scrutiny and cost pressures. He also noted the continued expansion of Itron’s recurring Outcomes segment, which helped offset some of the slowdown in hardware-related revenue.

Is now the time to buy ITRI? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Itron’s Q3 Earnings Call

• Noah Kaye (Oppenheimer & Co.) asked about the drivers behind lower revenue guidance and project delays, to which CFO Joan Hooper confirmed that most weakness was in network deployments, while margins should remain stable.
• Noah Kaye (Oppenheimer & Co.) also pressed for insight on pipeline conversion delays. CEO Thomas Deitrich responded that hardware projects are being pushed out by customers, but recurring revenue and win rates remain strong.
• Jeffrey Osborne (TD Cowen) inquired about customer behavior in stretching project timelines and whether any projects had been cancelled. Deitrich clarified that no projects were stopped, but some are now scheduled over longer periods due to budget constraints.
• Alfred Moore (ROTH Capital Partners) sought clarity on whether muted bookings would affect long-term growth targets. Deitrich maintained confidence in the 2027 targets, though he acknowledged that the revenue mix may lean more toward margins in the near term.
• Scott Graham (Seaport Research Partners) questioned the impact of delivery time extensions on backlog. Deitrich explained that a few large projects are now profiled over four years instead of three, but recurring software and services revenue continues to grow.

Catalysts in Upcoming Quarters

In the coming quarters, our team will be tracking (1) the pace at which delayed hardware deployments resume and whether project timelines normalize, (2) sustained growth in the Outcomes segment and further expansion of licensed distributed intelligence applications, and (3) the integration progress and initial customer traction from the Urbint acquisition. The trajectory of new bookings and any signs of permanent shifts in utility spending will also be closely monitored.

Itron currently trades at $106.70, down from $138.32 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members).

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