Ituran Location & Control (ITRN) Misses Q4 EPS by 4c

Ituran Location & Control (NASDAQ: ITRN) reported Q4 EPS of $0.31, $0.04 worse than the analyst estimate of $0.35. Revenue for the quarter came in at $65.5 million versus the consensus estimate of $65.68 million.

Highlights of the fourth quarter of 2019

• Revenue of $65.5 million;
• Adjusted EBITDA of $16.5 million;
• Generated $17.0 million in quarterly operating cash flow;
• Dividend of $5 million declared for the quarter;
• Net increase in aftermarket subscribers of 22,000;

Management Comment

Eyal Sheratzky, Co-CEO of Ituran said, "We are pleased with the growth of 22,000 aftermarket subscribers in the quarter, which for the last three quarters now, has been at our longer-term expected growth rate. We expect that this continued recovery in the aftermarket subscriber growth will translate into continually improving operating results on a sequential basis throughout 2020."

Continued Mr. Sheratzky, "Our OEM segment has been weak due to the difficult environment that the car manufacturers in Brazil and Argentina have faced throughout 2019. However, looking ahead to 2020, we believe the fourth quarter represents the bottom and we now expect to resume sequential growth in our results. This is due to the steps we have taken in reducing expenses in Brazil and Argentina, as well as the growth we expect in some of our other countries including Mexico, Ecuador and Columbia."

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

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