Ituran Location and Control (NASDAQ:ITRN) Posts Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• Ituran beat quarterly expectations: EPS was $0.88 versus the $0.87 consensus, while revenue reached $104.8 million, ahead of estimates of $99.8 million.
• Record operating performance: Revenue rose 21% year over year, EBITDA increased 24% to $28.5 million, and net income grew 29% to $17.3 million. Recurring subscription revenue climbed 25%, with subscribers reaching 2.711 million.
• Strong balance sheet and shareholder returns: Operating cash flow hit a record $32.2 million, and the company held $103.7 million in net cash and marketable securities with no debt. It declared a $10 million quarterly dividend and repurchased $3 million of shares.

Ituran Location and Control (NASDAQ:ITRN - Get Free Report) released its quarterly earnings data on Wednesday. The industrial products company reported $0.88 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.87 by $0.01, FiscalAI reports. The company had revenue of $104.79 million during the quarter, compared to analyst estimates of $99.84 million. Ituran Location and Control had a net margin of 16.03% and a return on equity of 27.70%.

Here are the key takeaways from Ituran Location and Control's conference call:

• Ituran reported record second-quarter results, with revenue up 21% year over year to $104.8 million, EBITDA up 24% to $28.5 million, and net income up 29% to $17.3 million. EBITDA margin improved to 27.2%.
• Recurring subscription revenue grew 25% to $79.8 million, while the subscriber base added 41,000 net customers to reach 2.711 million. OEM programs, particularly in South America and with Stellantis, Yamaha, and BMW, remain key growth drivers.
• Strong cash generation continued, with record operating cash flow of $32.2 million and $103.7 million of net cash and marketable securities with no debt. The company declared a $10 million quarterly dividend and repurchased $3 million of shares.
• Big-data initiatives are progressing through pilots and discussions with governmental, transportation, and commercial customers, initially focused on Israel before potential expansion to Brazil and Mexico. However, management characterized IturanMOB in the U.S. as a midterm opportunity unlikely to contribute materially in 2026 or 2027.
• Motorcycle telematics is gaining traction in Brazil, while usage-based insurance is growing mainly in Israel but remains limited by low average revenue per user and the insurance industry's slow adoption of data-driven pricing.

Ituran Location and Control Price Performance

Ituran Location and Control stock traded up $3.86 during midday trading on Wednesday, hitting $56.52. 91,492 shares of the stock were exchanged, compared to its average volume of 130,651. Ituran Location and Control has a 1 year low of $32.71 and a 1 year high of $68.30. The firm has a market cap of $1.12 billion, a P/E ratio of 18.65 and a beta of 0.79. The company has a 50 day moving average price of $58.95 and a two-hundred day moving average price of $54.66.

Ituran Location and Control Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 8th. Investors of record on Wednesday, June 24th were paid a dividend of $0.50 per share. The ex-dividend date of this dividend was Wednesday, June 24th. This represents a $2.00 annualized dividend and a yield of 3.5%. Ituran Location and Control's payout ratio is 66.01%.

Analyst Upgrades and Downgrades

ITRN has been the subject of several recent research reports. Zacks Research upgraded Ituran Location and Control to a "hold" rating in a report on Thursday, May 28th. Wall Street Zen upgraded Ituran Location and Control from a "buy" rating to a "strong-buy" rating in a research note on Tuesday, June 2nd. Finally, UBS Group reiterated a "buy" rating on shares of Ituran Location and Control in a report on Wednesday, May 27th. Four research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $60.67.

Institutional Trading of Ituran Location and Control

A number of hedge funds and other institutional investors have recently modified their holdings of ITRN. Aristides Capital LLC boosted its holdings in Ituran Location and Control by 1.1% in the fourth quarter. Aristides Capital LLC now owns 283,405 shares of the industrial products company's stock valued at $12,189,000 after purchasing an additional 3,010 shares during the last quarter. Raymond James Financial Inc. increased its holdings in Ituran Location and Control by 32.1% during the 3rd quarter. Raymond James Financial Inc. now owns 159,200 shares of the industrial products company's stock worth $5,687,000 after purchasing an additional 38,655 shares during the last quarter. Man Group plc raised its position in shares of Ituran Location and Control by 90.8% in the 2nd quarter. Man Group plc now owns 137,657 shares of the industrial products company's stock valued at $5,331,000 after purchasing an additional 65,502 shares in the last quarter. Millennium Management LLC raised its position in shares of Ituran Location and Control by 71.1% in the 4th quarter. Millennium Management LLC now owns 125,478 shares of the industrial products company's stock valued at $5,397,000 after purchasing an additional 52,150 shares in the last quarter. Finally, First Trust Advisors LP boosted its stake in shares of Ituran Location and Control by 74.2% during the 3rd quarter. First Trust Advisors LP now owns 117,720 shares of the industrial products company's stock valued at $4,205,000 after buying an additional 50,127 shares during the last quarter. 94.80% of the stock is owned by hedge funds and other institutional investors.

About Ituran Location and Control

Ituran Location and Control Ltd. is a provider of wireless vehicle tracking and stolen vehicle recovery services. The company leverages a combination of cellular and global positioning system (GPS) technologies to offer real-time monitoring and location-based solutions for private vehicle owners, fleet operators and insurance companies. Its core offerings include subscription-based tracking devices, centralized control centers and software platforms that enable clients to detect unauthorized vehicle use, dispatch recovery teams and manage fleet logistics.

Founded in 1994 in Israel, Ituran pioneered the use of wireless communications for security and telematics applications.

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