Benzinga | May 3, 2021 12:07PM EDT

Itron Reports Mixed Q1 Earnings, Raises FY21 EPS Guidance

* Itron Inc (NASDAQ: ITRI) reported a first-quarter FY20 revenue decline of 13% year-on-year to $520 million, missing the analyst consensus of $535.25 million. Total backlog rose 13.3% to $3.4 billion.

* The pandemic's impact on the timing of customer projects led to the decline.

* Device Solutions revenue and Networked Solutions revenue declined 15% each to $172.8 million and $288.3 million, respectively, partially offset by Outcomes revenue growth of 6% to $58.5 million.

* Gross margin expanded 350 basis points to 32.2% from favorable product and solutions mix and operational efficiencies.

* Non-GAAP operating income of $39 million was in line with the previous year.

* Non-GAAP EPS was $0.52, beating analyst consensus of $0.42.

* The company generated $50 million in operating cash flow. It held $574.6 million in cash and equivalents.

* The company expected the business headwinds to persist through the first half of the year, despite improvement.

* Guidance: FY21 revenue guidance lies between $2.23 and $2.33 billion, slightly above the analyst consensus was $2.28 billion.

* Itron raised the FY21 non-GAAP EPS guidance from the previous range of $2.15 and $2.55 to $2.30 and $2.70, versus the analyst consensus of $2.38.

* Price action: ITRI shares are down 2.02% at $88.12 on the last check Monday.