Ituran Location & Control (ITRN) Misses Q3 EPS by 8c, Revenues Miss

Ituran Location & Control (NASDAQ: ITRN) reported Q3 EPS of $0.37, $0.08 worse than the analyst estimate of $0.45. Revenue for the quarter came in at $69 million versus the consensus estimate of $70.93 million.

Highlights of the third quarter of 2019

• Revenue of $69.0 million, up 29% year-over-year;
• Adjusted EBITDA of $18.7 million (26.8% of revenues), up 10% year-over-year
• Generated $11.5 million in quarterly operating cash flow;
• Dividend of $5 million declared for the quarter;
• Ituran added 20,000, net after-market subscribers and no change to OEM subscribers;

Management Comment

Eyal Sheratzky, Co-CEO of Ituran said, "While Ituran's aftermarket business in Brazil has been recovering and returning to its growth trend, the OEM segment remains weak as a result of the difficult environment that the car manufacturers in the region are facing. 2019 has been a transitional year for us and we are working on realizing the synergies from the recently acquired OEM business across all our geographies. We are focusing on cross selling our services into new geographies as well as combining the operating footprint which will result in cost saving that will offset any decline in OEM revenues."

Continued Mr. Sheratzky, "In the aftermarket business, the subscriber quarterly growth rate has returned to its long-term target level of around 20,000 subscriber-adds per quarter, which we are very pleased with. We expect that the resumption of aftermarket subscriber growth will translate into improved operating results in the coming year."

For earnings history and earnings-related data on Ituran Location & Control (ITRN) click here.

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