ITRI - Itron slides on trimmed guidance earnings miss: Q2 Results

• Itron ( NASDAQ: ITRI ) stock slid sharply on Thursday after the company slashed its annual outlook as component shortages caused a steep decline in revenue.
• In reporting its second quarter results , the Washington-based information technology company posted revenue of $431.88M (-11.8% Y/Y) missing analysts estimate by $56.64M.
• Device Solutions revenue declined 36%, Networked Solutions revenue increased 2%, and Outcomes revenue decreased 6%.
• Bookings in the quarter totalled $612M.
• Gross margin of 29.2% decreased 140 basis points a year-ago, primarily due to inflationary pressures and inefficiencies driven by component shortages.
• Adjusted EBITDA of $17M, compared with $36M;
• Non-GAAP EPS of $0.07 misses expectation by $0.16.
• "In the second quarter of 2022, we continued to be impacted operationally by supply constraints and manufacturing inefficiencies. Meanwhile demand for our solutions remained strong with a healthy book-to-bill ratio and another record set for total ending backlog as well as 12-month backlog," said Tom Deitrich, Itron's president and chief executive officer.
• Free cash flow was $10M in the second quarter compared with $64M in the prior year.
• Total backlog was $4.1B and 12-month backlog was $1.7B, compared with $3.5B and $1.4B, respectively, in the prior year.
• FY 2022 Guidance: Revenue is now expected to be between $1.85 to $1.9B, down from prior guidance of $2-$2.1B, vs. consensus of $2.02B
• Non-GAAP diluted EPS between $0.70 to $0.90, vs. previous guidance of $1.25 to $1.75, vs. consensus of $1.43

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