Itron (ITRI +9.5%) jumps after soundly beating Q2 estimates with the help of a 270 bps Y/Y improvement in gross margin. The smart meter vendor guided for 2012 revenue of $2.1B-$2.2B and EPS of $3.80-$4 - the former is below a $2.24B consensus, but the latter is largely above a Street forecast of $3.80. During its earnings call, Itron talked up the growth outlook for its water meter business, which it hopes will offset slower demand for gas meters.