Itron Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Itron (NAS: ITRI) have popped by upwards of 15% today after the company reported third quarter earnings this morning.
So what: The maker of power meters reported revenue of $615.6 million, but a massive net loss of $517 million, or $12.70 per share, compared with a $0.68 per share profit in the prior year. However, the bulk of the operating loss was the result of a goodwill impairment to the tune of $540 million.
Now what: For the year, management sees total revenue in the range of $2.3 billion-$2.4 billion and non-GAAP diluted earnings per share between $4 and $4.20. The company is closing several of its manufacturing units, which will result in 750 full-time positions being cut, or around 7.5% of its global workforce. Itron sees around $30 million in annual cost savings in 2013 from the restructuring, and will be shutting down or consolidating plants over the next 15-18 months.
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