Itron (NASDAQ: ITRI) reported Q3 EPS of $1.13, $0.29 better than the analyst estimate of $0.84. Revenue for the quarter came in at $596 million versus the consensus estimate of $605.88 million.

Revenue of $596 million, compared with $487 million in the third quarter of 2017;
Gross margin of 33.1 percent, compared with 34.1 percent in the third quarter of 2017;
GAAP diluted earnings per share (EPS) of 50 cents, compared with 65 cents in the third quarter of 2017;
Non-GAAP diluted EPS of $1.13, compared with 77 cents in the third quarter of 2017;
Adjusted EBITDA of $81 million, compared with $58 million in the third quarter of 2017; and
Total backlog of $3.1 billion, compared with $1.5 billion at the end of the third quarter of 2017.

"Our third quarter results were in line with our expectations," said Philip Mezey, Itron\'s president and chief executive officer. "We achieved strong revenue growth year over year - both organic and through the addition of the Networks segment - and have seen significant improvement year over year and sequentially in our operating income.

"However, we continue to experience external and operational supply chain headwinds, which are expected to remain in the fourth quarter and into 2019," continued Mezey. "We are executing on initiatives to mitigate these cost headwinds, but extended lead times and component shortages are now impacting our top line, resulting in lower revenue guidance for the full year 2018.

“We believe these headwinds will subside somewhat in 2019 and do not change our fundamental long-term model. We continue to implement our operational restructuring programs and integration of recent acquisitions, deliver new and innovative products to market and execute our strategy.”

GUIDANCE:

Itron sees FY2018 EPS of $2.40-$2.50, versus the consensus of $2.81. Itron sees FY2018 revenue of $2.37-2.39 billion, versus the consensus of $2.44 billion.

For earnings history and earnings-related data on Itron (ITRI) click here.