Ituran Location & Control (ITRN) Tops Q3 EPS by 14c, Revenues Beat

Ituran Location & Control (NASDAQ: ITRN) reported Q3 EPS of $0.45, $0.14 better than the analyst estimate of $0.31. Revenue for the quarter came in at $60.3 million versus the consensus estimate of $59.1 million.

Highlights of the third quarter of 2020

• Improved results versus the prior quarter, as the Company continues to successfully overcome some of the impacts of the Covid-19 pandemic;
• Revenues of $60.3 million, an increase of 13% sequentially and a decline of 13% year over year; in local currencies revenues from subscription fees were at a similar level to that of the last year's quarter;
• EBITDA was $15.0 million; when excluding foreign exchange impacts, it would have been at a similar level to last year;
• Net income was $9.3 million, an increase of 45% year over year;
• Generated $13.6 million in quarterly operating cash flow; Ituran returns to a net cash position for the first time since its acquisition of RoadTrack in 2018;
• Total subscribers reached 1,752,000 at the end of the quarter; net increase of 13,000 in after-market subscribers and net decrease of 12,000 in the OEM business.

Management Comment

Eyal Sheratzky, Co-CEO of Ituran said, "We are happy with the improvement in our results in the third quarter, despite an environment which still remains difficult in many of our geographies due to the ongoing pandemic. While revenues were still below those of the third quarter last year, we are pleased with the resumption in our sequential growth. Furthermore, we are happy to report that our after-market subscriber base resumed its growth again, showing growth of 13,000 subscriber this quarter. Finally, the steps we took earlier this year as the effects of the pandemic became apparent, enabled us to reach similar operating profit compared with last year when excluding foreign exchange impact."

Mr. Sheratzky concluded, "Looking ahead, while the pandemic continues to have an impact, and the associated uncertainties are making it difficult to make predictions, we expect that the results of the fourth quarter will be similar to this quarter. Longer-term, I am confident that Ituran is very well positioned to emerge this period a stronger company with a platform for long-term sustainable and profitable growth."

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

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