Earnings Per Share (EPS) of $0.70, beating the estimated $0.68, showcasing strong financial performance.
Reported revenue of $82.88 million, exceeding expectations and indicating growth supported by strategic initiatives.
Announced a 25% increase in dividend policy and a significant rise in net subscriber-add expectations for 2025, reflecting confidence in financial stability and growth prospects.
Ituran Location and Control Ltd. (NASDAQ: ITRN) specializes in providing location-based services, including vehicle tracking and recovery. Operating in various countries, ITRN offers services aimed at vehicle theft prevention and fleet management, competing within the telematics and vehicle tracking industry to maintain a strong market position.
On February 26, 2025, ITRN reported an EPS of $0.70, surpassing the estimated $0.68. This positive earnings surprise reflects the company’s strong financial performance. Additionally, ITRN reported revenue of approximately $82.88 million, exceeding the estimated $81.81 million. This revenue growth is supported by the company’s strategic initiatives and operational improvements.
ITRN has announced a significant increase in its net subscriber-add expectations for 2025, projecting an addition of 180,000 to 200,000 subscribers. This growth aims to reach a total of 2.6 million subscribers by the end of the year. In 2024, the company added 157,000 subscribers, reaching the upper end of its expected range, demonstrating its ability to attract and retain customers.
The company has also raised its dividend policy by 25%, now distributing $10 million per quarter. This increase in dividends reflects ITRN’s confidence in its financial stability and commitment to returning value to shareholders. Despite currency devaluations impacting reported financial results, the company experienced better outcomes in local currency terms, as highlighted by Eyal Sheratzky, Co-CEO of Ituran.
ITRN’s financial metrics indicate a strong market position. With a price-to-earnings (P/E) ratio of approximately 16.84, the market values its earnings favorably. The price-to-sales ratio of about 2.66 and enterprise value to sales ratio of around 2.47 suggest a solid market valuation relative to sales. The low debt-to-equity ratio of approximately 0.025 indicates a conservative approach to leveraging, while a current ratio of around 2.20 suggests a strong ability to cover short-term liabilities.
