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It’s been a rough few months for Itron, culminating in a 10% plunge several days on news it has likely lost a big smart meter deal with Sempra Energy (NYSE:SRE) to Esco Technologies (NYSE:ESE). After hours Wednesday, the stock is continuing to erase that loss after the company reported strong results after the bell.

Itron (NASDAQ:ITRI) smashed analyst estimates, posting a Q2 non-GAAP EPS of $0.98, versus the analyst estimate of $0.73. Revenue for the quarter was $569 million, compared to analyst estimates of $499.94 million. Sequentially, that’s about a 10% improvement in profits and a 14% improvement in revenues. It marks the 4th consecutive quarter of accelerating revenue growth. Quarter over quarter, EPS doubled while revenues surged 38%. A very impressive quarter from a company that is still going to be a great long term play despite possibly missing one big contract.

CEO Malcolm Unsworth commented:

We are having a fantastic year with record financial results, strong bookings and record backlog. This performance underscores the strength of Itron’s portfolio of products and solutions — the broadest in the industry. At the same time, there were some disappointments with recent contract awards in North America. As we look forward, we are actively pursuing a variety of activities to enhance our competitive position in these areas.

Shares of Itron were up nearly 10% after the bell Wednesday and if it holds would erase almost the entire loss off the Sempra news. I think the correction over the past few months which has dropped the stock from above $80 to below $55 will eventually provide an excellent buying opportunity. In my opinion, it’s just a bit too early yet. I’d like to see a return to support around the $55 level. It’s trading at $63 after hours.

Disclosure: None

Source: Itron's Spectacular Results Could Erase Lost Sempra Deal Fallout