Itron (ITRI) Registers a Bigger Fall Than the Market: Important Facts to Note

Itron (ITRI) recently closed down 3.48% at $122.20, underperforming the S&P 500, though it gained 5.07% over the past month. Ahead of its October 30, 2025 earnings release, consensus estimates project a 19.57% decrease in EPS to $1.48 and a 6.34% revenue decline for the upcoming quarter, contrasting with an anticipated 8.01% annual EPS growth. The company currently holds a Zacks Rank #2 (Buy) and trades at a Forward P/E of 20.85 and a PEG ratio of 0.7, both at a discount to its industry averages, indicating a potentially favorable valuation.

Analysis

Itron (ITRI) experienced a daily decline of 3.48% to $122.20, underperforming the S&P 500's 2.71% loss, though it gained 5.07% over the past month, outpacing the S&P 500. The market awaits its Q3 2025 earnings on October 30, 2025, which are projected to show a 19.57% year-over-year EPS decrease to $1.48 and a 6.34% revenue decline to $576.45 million.

Despite the near-term quarterly projections, the annual outlook is more positive, with Zacks Consensus Estimates forecasting an 8.01% increase in annual EPS to $6.07 and a modest 2.76% decrease in revenue to $2.37 billion. The consensus EPS projection has remained stagnant over the last 30 days, indicating limited short-term estimate revision catalysts.

From a valuation perspective, ITRI trades at a Forward P/E of 20.85, a discount to its industry average of 23.2, and boasts a PEG ratio of 0.7, significantly below the industry's 2.63. This suggests potential undervaluation relative to its expected earnings growth. The company also holds a Zacks Rank #2 (Buy) and operates within the Electronics - Testing Equipment industry, which has a strong Zacks Industry Rank of 9 (top 4%).

This combination of favorable valuation metrics, a strong industry position, and a "Buy" rating from Zacks suggests a bullish long-term outlook for Itron, despite the anticipated short-term quarterly earnings contraction.

Key Decisions for Investors

• Closely monitor Itron's Q3 2025 earnings release on October 30, 2025, particularly the actual EPS and revenue figures against the projected declines.
• Evaluate the stock's long-term potential, considering its attractive valuation metrics (Forward P/E and PEG ratio discounts) and its strong Zacks Rank #2 (Buy) within a high-performing industry.
• Assess if the anticipated annual EPS growth of 8.01% can offset the projected quarterly declines, potentially offering a buying opportunity for long-term investors.