ITRI - Itron's Supply Challenges Reset The Story But Long-Term Drivers Still In Play

• Itron disappointed investors in a big way with second quarter results that missed expectations by a wide margin and lower guidance for the full year due to semiconductor shortages.
• Orders and backlog continue to grow, which is a positive, but it's worth monitoring those metrics to see if customers bail out for suppliers that can meet their near-term needs.
• A short-term supply chain-driven miss doesn't change the long-term story; Itron is still well-placed to meet growing need among utilities for more reliable, rugged, and automated grids.
• If Itron can generate long-term revenue growth in excess of 6% and drive FCF margins into the low-to-mid-teens, the long-term return potential is attractive today.

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