Itron, Inc. ITRI recently partnered with Xcel Energy XEL to address Colorado's evolving energy needs. This collaboration focuses on integrating DERs including residential battery energy storage into the grid to enhance grid flexibility and reliability and meet customer demand. XEL will deploy an Itron’s Aggregator Distributed Energy Resource Management System (DERMS). This technology is part of Itron’s Grid Edge Intelligence portfolio. It is designed to manage the increasing number of distributed energy resources (DERs), including residential batteries, solar panels and electric vehicle (EV) chargers.

With the growing uptake of residential batteries, energy providers can leverage Aggregator DERMS to use these batteries and other DERs as grid resources. This improves reliability, saves energy costs and supports solar and EV growth. Aggregator DERMS manages DERs both collectively for tasks like demand response and locally for devices like solar panels, EV chargers and smart thermostats. XEL utilizes Itron’s Aggregator DERMS through its Renewable Battery Connect program to manage residential battery storage, helping to reduce peak loads and ensure reliable electric service for customers.

Management highlighted the significance of its Aggregator DERMS in grid management. The platform integrates advanced analytics and distributed intelligence edge computing to provide real-time visibility and autonomous management of DERs. This integration facilitates a smooth connection between grid operators and consumer-owned devices, turning them into valuable grid assets. With a track record of managing 3 million DER devices for 30 utilities across the U.S., Itron’s Grid Edge Intelligence portfolio showcases its scalability and effectiveness. 

As the adoption of solar panels, battery storage and EVs accelerates, solutions like Itron’s Aggregator DERMS will be instrumental in ensuring the grid remains adaptable and efficient. By leveraging innovative solutions like Aggregator DERMS, utilities can harness the power of DERs to manage diverse resources effectively, ensuring reliability, affordability and environmental sustainability. Itron anticipates benefiting from new contracts and a robust demand environment for its Grid Edge Intelligence portfolio, reflecting positively on its financial performance and stock movement.

Strong Grid Edge Intelligence Portfolio Fuels ITRI’s Growth

The company’s premium Grid Edge Intelligence platform shows strong potential. Multiple factors like rising data center demand, reindustrialization, production localization and the electrification of transport and homes are cushioning its growth trends. Automation in water infrastructure, gas safety applications and operational digitalization are other key growth drivers. 

Management highlighted that customers are adopting new digital technologies and non-wires grid solutions, presenting lucrative opportunities for Itron. Its edge intelligence solutions are gaining traction, and the acquisition of Elpis Squared further enhances its Grid Edge Intelligence platform. At quarter-end, the total backlog was $4 billion, with 2024 bookings projected to achieve a book-to-bill ratio of 1:1 or higher.

The launch of fresh products in the Grid Edge Intelligence solution is another encouraging development. In October 2024, ITRI introduced Grid Edge Essentials, a cutting-edge, pre-integrated solution that offers utilities end-to-end grid visibility, helps integrate renewable energy, enhances consumer engagement and supports more resilient and efficient grid operations.

Strong demand trends, effective operations and scheduled customer shipments have led to an increase in revenue guidance for full-year 2024. Management now expects revenues to be between $2.428 billion and $2.438 billion, up from the prior view of $2.385-$2.415 billion in July 2024. This higher revenue outlook is expected to positively impact earnings, with non-GAAP earnings per share projected in the range of $5.28-$5.38, up from the $4.45-$4.65 range estimated 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 45.3% in the past year compared with the sub-industry’s growth of 2.7%.

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Stocks to Consider

Some better-ranked stocks from the broader technology space are InterDigital, Inc. IDCC, and Plexus Corp., Inc. PLXS. IDCC & PLXS presently sport a Zacks Rank #1 (Strong 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 original equipment makers 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%.

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