Itron ITRI recently teamed up with Jemena — a major Australian provider of gas and electricity services. Together, they are deploying Itron’s Low Voltage Distributed Energy Resource Management System (LV DERMS) to manage rooftop solar generation, enhance energy system resilience and address the challenges posed by Australia's growing solar penetration.

The LV DERMS was launched in March 2024 at the Energy Networks Conference in Adelaide, Australia. This solution ensures stability in the low-voltage network while managing consumer energy resources (CERs) like rooftop solar and battery storage. It aims to tackle the challenges of grid instability caused by the ongoing energy transition.

The collaboration finds relevance in the Victorian Government's new solar energy mandate, effective since Oct. 1, 2024. The regulation mandates that all newly installed or upgraded rooftop solar systems must be equipped with a utility-compatible inverter and a stable Internet connection. This allows utilities to actively monitor and manage minimum energy demand. 

During periods of excess solar generation, LV DERMS allows Jemena, under the supervision of the Australian Energy Market Operator (“AEMO”), to remotely cut back solar power generation. This feature complies with Victoria's requirements, providing a simple, cost-effective and secure solution to AEMO's low-voltage network stability challenges.

Itron, Inc. Price and Consensus

Itron, Inc. price-consensus-chart | Itron, Inc. Quote

By deploying LV DERMS, Jemena is not only ensuring compliance with regulatory mandates but also paving the way for a smarter, more resilient grid. The platform aids Jemena in securely tracking solar generation from new rooftop systems starting Oct. 1, 2024. Near real-time data gives Jemena visibility into energy levels, helping prevent grid instability from excess solar input. Adjusting solar input ensures reliable grids without interrupting customer supply. Also, it integrates effortlessly with Jemena’s existing back-office systems, providing a comprehensive view of network performance and simplifying deployment.

Apart from operational benefits, the partnership contributes to Australia’s broader climate goals. Rooftop solar represents the fastest-growing renewable energy source in the country, and its effective integration into the energy system is essential for achieving a sustainable future. The LV DERMS empowers utilities to harness the full potential of CERs, transforming the electricity distribution network into a dynamic and resilient infrastructure. Another advantage of Itron’s LV DERMS lies in its ability to integrate seamlessly with existing Advanced Metering Infrastructure (AMI) networks. Many Australian utility providers, including Jemena, have already deployed Itron’s solutions at the edge of their AMI networks. This initiative streamlines the deployment process, reducing costs at the same time.

Healthy demand for Itron’s solutions in the energy and water sectors and robust operational execution are driving the company’s growth prospects. In the last reported quarter, its revenues jumped 10% year over year to $615 million, beating the Zacks Consensus Estimate by 3.2%. 

Robust demand, efficient operations and the timing of customer shipments have led to an upward revision of the revenue forecast for full-year 2024. Management anticipates revenues to range of $2.428 billion to $2.438 billion, up from the July 2024 guidance of $2.385 billion to $2.415 billion. The higher revenue outlook is also expected to drive earnings growth. Non-GAAP earnings per share are now estimated at $5.28 to $5.38, an increase from the projection of $4.45 to $4.65 issued in July 2024.

ITRI’s Zacks Rank and Stock Price Performance

ITRI currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 69% in the past year compared with the sub-industry’s growth of 16%.

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Stocks to Consider

Some better-ranked stocks from the broader technology space are Plexus Corp., Inc. PLXS, Workday Inc. WDAY and InterDigital, Inc. IDCC. IDCC & PLXS presently sport a Zacks Rank #1 (Strong Buy), whereas WDAY carries a Zacks Rank #2(Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 17.44%

Plexus is a leading provider of electronic contract manufacturing services to OEMs in a wide range of industries, including Healthcare/Life Sciences, Industrial and Aerospace/Defense market sectors. In the last reported quarter, PLXS delivered an earnings surprise of 20.92%.

WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system, making it easier for organizations to provide analytical insights and decision support. In the last reported quarter, it delivered an earnings surprise of 7.36%. 


 

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