Ituran Location & Control (ITRN) Misses Q4 EPS by 2c, Revenues Beat

March 3, 2021 6:33 AM EST

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Ituran Location & Control (NASDAQ: ITRN) reported Q4 EPS of $0.33, $0.02 worse than the analyst estimate of $0.35. Revenue for the quarter came in at $66 million versus the consensus estimate of $62.82 million.

Highlights of the fourth 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;
  • Net increase in aftermarket subscribers of 21,000 and net decrease in OEM subscribers of 5,000;
  • Revenue of $63.6 million, up 5.4% sequentially;
  • Adjusted EBITDA of $16.6 million, up 10% sequentially;
  • Generated $16.5 million in quarterly operating cash flow;
  • Declared dividend of $10 million;

Management Comment

Eyal Sheratzky, Co-CEO of Ituran said, "We are very happy with the continued improvement in our results which outperformed our expectations, particularly the sequential growth in revenue and EBITDA. We are also pleased with our highest-ever full year operating cash flow of $60 million. This is despite a difficult year for everyone, demonstrating the resilience and stability of our business even in the toughest of times. Our improving financial performance into the fourth quarter as well as our after-market net subscriber growth of 21,000, a growth rate we typically expect in normal times, demonstrate that Ituran is well on the way to recovery. We expect the positive trend to continue in the quarters ahead."

Mr. Sheratzky continued, "Given the improvements in our business and the strong cash generation, the Board decided to renew our dividend payments, while maintaining a level of conservatism, as long as the pandemic impact continues globally. We look forward to sharing the ongoing fruits of our success with our shareholders."

Mr. Sheratzky concluded, "I am confident that Ituran is emerging from this period in a much stronger position with a platform for long-term sustainable and profitable growth for the years ahead."

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

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