Itron Shares Plunge 16% As Q4 Results Miss View, Weak Outlook

(RTTNews) - Shares of Itron, Inc. (ITRI) plunged nearly 16 percent in extended trading on Wednesday after the technology provider to the utility industry reported results for the fourth quarter that missed analysts' expectations. The company also provided earnings and revenue guidance for the full-year 2014, well below Street view.

Meanwhile, the company reported a huge net loss for the quarter compared to a profit last year, hurt largely by a hefty goodwill impairment charge and restructuring costs.

"Our fourth quarter revenue and non-GAAP operating income results reflect continued improvement in our performance. I was pleased with the increase in smart volumes, 13 percent growth in bookings, our execution on our restructuring plans and our efforts to lower costs and expenses," President and CEO Philip Mezey said in a statement.

The Liberty Lake, Washington-based reported a net loss of $154.43 million or $3.93 per share for the fourth quarter, compared to net income of $15.96 million or $0.40 per share in the prior-year quarter. Results for the latest quarter primarily include a $4.12 per share goodwill impairment charge.

Excluding items, adjusted net income for the quarter was $14.29 million or $0.36 per share, compared to $22.94 million or $0.58 per share in the year-ago quarter.

On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.74 per share for the quarter. Analysts estimates typically exclude special items.

Revenues for the quarter edged up to $523.5 million from $523.34 million in the same quarter last year, but missed ten Wall Street analysts' consensus estimate of $526.94 million.

The company noted that higher revenue in the electricity and water segments was offset by lower revenue in the gas segment.

Gross margin for the quarter improved 30 basis points to 31.5 percent from last year's 31.2 percent.

Total operating expenses for the quarter soared to $313.75 million from $144.03 million in the prior-year quarter, including hefty goodwill impairment charge of $173.25 million and restructuring expense of $2.72 million.

For fiscal 2013, the company reported a net loss of $146.81 million or $3.74 per share, compared to net income of $108.28 million or $2.71 per share in the prior year.

Adjusted net income for the year was $75.14 million or $1.90 per share, compared to $144.58 million or $3.62 per share in the year ago. Analysts expected the company to report earnings of $2.29 per share for fiscal 2013.

Revenues for the full year decreased to $1.95 billion from $2.18 billion in the previous year. Street was looking for full-year 2013 revenues of $1.95 billion.

Looking ahead to fiscal 2013, the company expects adjusted earnings in a range of $1.30 to $1.80 per share, on projected annual revenues between $1.825 billion and $1.925 billion, with analysts currently anticipating earnings of $2.95 per share on revenues of $2.06 billion.

Additionally, the company said its board of directors authorized a new share repurchase program of up to $50 million of stock over a 12-month period to commence upon the completion of the current repurchase program in March 2014.

While fourth quarter results were impacted by a goodwill impairment charge in our Electricity segment and a discrete tax charge, the steps we have taken in 2013 position Itron to be more competitive in a tough economy and global marketplace," Mezey added.

ITRI closed Wednesday's regular trading session at $39.19, down $0.04 or 0.10% on a volume of 0.53 million shares. The stock plunged a further $6.08 or 15.51% in after-hours trading.