LIBERTY LAKE, Wash. - Itron, Inc. (NASDAQ: NASDAQ:ITRI), a company specializing in energy and water management, in partnership with artificial intelligence firm VODA.ai, has announced the release of a new Pipe Asset Management software aimed at aiding water utilities in their maintenance and replacement strategies. This AI-powered solution is designed to help utilities identify pipes that require replacement or rehabilitation, potentially reducing costs and improving the safety and reliability of water distribution.
The new tool integrates Itron's comprehensive water meter data with the utilities' existing data collections, such as geographic information system (GIS) data and historical pipe failure records. VODA.ai's daVinci™ AI engine processes this data to pinpoint at-risk pipes, including those that may contain lead, facilitating a science-based approach to pipe management.
A significant portion of North America's water infrastructure is reportedly in need of updating, with an estimated 452,000 miles of pipes deemed beyond their useful life, according to a Utah State University study. Itron's software, by leveraging existing data and public information like soil and terrain features, offers a proactive method to address this challenge.
The Pipe Asset Management software is also equipped with a Lead Pipe Inventory Replacement feature, which uses AI to identify pipes likely to have lead components. This function is particularly important for ensuring the safe delivery of drinking water.
Don Reeves, Itron’s senior vice president of Outcomes, emphasized the shift from guesswork to a more informed, data-driven process in selecting pipes for maintenance. George Demosthenous, CEO of VODA.ai, highlighted the alignment of this collaboration with their mission to simplify engineering for water professionals.
The software is available globally and can be integrated into Itron's existing water portfolio or used as a standalone solution. Demonstrations of the Pipe Asset Management tool are being conducted at the AWWA's Annual Conference & Expo (ACE24).
This collaboration between Itron and VODA.ai represents a step towards modernizing water utility infrastructure and creating a sustainable environment for future generations. The information for this article is based on a press release statement.
In other recent news, Itron, Inc. has been a topic of discussion among several analyst firms following its strong performance in the first quarter of 2024. The company's robust earnings and revenue results have been a highlight, with Piper Sandler, Stephens, Oppenheimer, and Roth/MKM all adjusting their price targets on Itron's shares. Piper Sandler downgraded the stock from Overweight to Neutral, maintaining a steady price target of $109.00, while Stephens raised its target to $110 from $85. Oppenheimer and Roth/MKM also increased their targets to $110 and $112 respectively, maintaining their favorable ratings.
The adjustments followed Itron's impressive financial performance, surpassing expectations in terms of revenue and adjusted earnings per share. The company's revenue reached $603 million, notably higher than the anticipated $580 million, and the adjusted EPS was reported at $1.24, exceeding the forecasted $0.85.
InvestingPro Insights
Itron, Inc. has been making significant strides not only in innovation within the water management sector but also in financial performance. According to InvestingPro data, Itron's market cap stands at a robust 4.96 billion USD, reflecting the company's market significance. The company's P/E ratio, a measure of its current share price relative to its per-share earnings, is 30.43, with a slight adjustment to 29.87 when considering the last twelve months as of Q1 2024. This indicates that investors are willing to pay a higher price for earnings, potentially due to expected growth or a strong track record.
In terms of revenue, Itron has shown a remarkable growth rate of 25.77% over the last twelve months as of Q1 2024. This growth is a testament to the company's ability to expand its reach and enhance its offerings, such as the new Pipe Asset Management software in partnership with VODA.ai.
InvestingPro Tips for Itron highlight several key points that investors might find appealing. Analysts have revised their earnings upwards for the upcoming period, suggesting a positive outlook on the company's financial future. Furthermore, Itron's liquid assets exceed its short-term obligations, which provides financial flexibility and stability. Additionally, the company is predicted to be profitable this year and has been profitable over the last twelve months, reinforcing its strong financial position. It's also noteworthy that the company has experienced a large price uptick over the last six months, trading near its 52-week high.
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