Ituran Location and Control Ltd Reports Strong Q3 2024 Financial Results
Intellectia.AI2024-11-21
Ituran Location and Control Ltd. Reports Strong Q3 2024 Financial Results
Ituran Location and Control Ltd. (NASDAQ: ITRN), a leader in mobility technology, released its financial results for the third quarter ending September 30, 2024. The company demonstrated robust performance, surpassing revenue estimates and maintaining strong operational metrics.
Key Financial Metrics:
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus Estimates |
|---|---|---|---|---|
| Revenue | $83.5 million | $81.1 million | +3% | $82.04 million |
| Net Income | $13.7 million | $12.5 million | +9% | - |
| Diluted Earnings Per Share | $0.69 | $0.63 | +9% | $0.65 |
| EBITDA | $23.3 million | $22.5 million | +4% | - |
Ituran exceeded revenue expectations, achieving a 3% increase year-over-year to $83.5 million, above the consensus estimate of $82.04 million. Earnings per diluted share also surpassed projections at $0.69 versus the expected $0.65. The company's net income grew by 9% year-over-year, reflecting continued profitability.
Revenue Breakdown:
| Segment | Q3 2024 | Q3 2023 | YoY Change |
|---|---|---|---|
| Subscription Fees | $59.6 million | $60.0 million | -1% |
| Product Revenues | $23.9 million | $21.0 million | +14% |
Subscription fees, comprising 71% of total revenues, saw a slight decline due to currency fluctuations, though in local currencies they grew by 4%. Product revenues rose significantly by 14% year-over-year, demonstrating strong demand for Ituran’s range of products and services.
Operational Highlights:
- The subscriber base expanded to 2,369,000, with a net increase of 40,000 subscribers.
- Gross profit increased by 2% to $40.2 million, with improvements in both subscription and product gross margins.
- The company maintained a strong balance sheet with a net cash position of $67.3 million.
Management Commentary:
Eyal Sheratzky, Co-CEO of Ituran, highlighted the company's solid financial performance and subscriber growth, which was at the upper end of their expectations. Sheratzky noted that despite the adverse effects of the strengthening US dollar on financial results, growth in local currencies was more pronounced. He emphasized the robust demand for Ituran’s location-based services and the positive impact of new initiatives.
Dividend and Share Repurchase Program:
Ituran declared an $8 million dividend for Q3 2024, equivalent to $0.39 per share, in alignment with its dividend policy. This dividend reflects a 60% increase over the year-ago quarter, underscoring the company’s ongoing strong profitability and cash flow.
Forward Guidance:
The company reiterated its full-year 2024 guidance, expecting EBITDA between $90-95 million and projecting 2025 EBITDA to exceed $100 million. Ituran plans to add 35,000 to 40,000 net new subscribers in Q4 2024, pending stable economic conditions and exchange rates.
Stock Price Movement:
Following the earnings release, Ituran's stock experienced a slight increase, with a post-event change of approximately 0.29%.
With a positive outlook and consistent financial performance, Ituran continues to solidify its position in the mobility technology sector.
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