AerialPerspective Works/E+ via Getty Images Thesis My analysis points out that Ituran Location and Control Ltd. (NASDAQ:ITRN) had solid Q2 2024 numbers, with a GAAP EPS of $0.66 and $84.9 million in revenue. Despite that, the stock isn't hitting the marks people expected. Even though Ituran announced a $0.39 dividend, showing strong profits, investors might be spooked by currency swings and geopolitical risks. The analysis digs into why, even with a positive outlook for the telematics industry, Ituran's sto ...

Financial Data and Key Metrics - Q2 2024 revenue was $84.9 million, a 4% increase YoY, with local currency revenue growth of 6% [11] - Subscription fee revenue was $60.4 million, up 2% YoY (5% in local currency), while product revenue was $24.5 million, up 9% YoY (10% in local currency) [11] - EBITDA for the quarter was $23.1 million, a 6% increase YoY, with local currency growth of 9% [12] - Net income was $13.1 million, up 7% YoY, with diluted EPS of $0.66 [12] - Subscriber base grew by 38,000 to 2,329,000, at the high end of the company's expectations [4][12] Business Line Data and Key Metrics - Geographic revenue breakdown: Israel 51%, Brazil 24%, rest of the world 25% [12] - The company launched a new motorcycle telematics product in South America, targeting OEMs and insurance companies [7][21] - The SaaS technology for vehicle sharing is being expanded to new geographies, including Israel and the United States [5] Market Data and Key Metrics - The company is actively engaging with major OEM car manufacturers and broadening services to existing partners in South America [7] - The motorcycle telematics product is gaining traction in Brazil, with discussions ongoing with insurance companies and OEMs [21][22] Company Strategy and Industry Competition - The company is leveraging its technology from the Porsche Carrera Cup project to enhance its offerings for subscribers and OEMs [6] - Ituran is expanding successful initiatives from one geography to others, such as the collaboration with Santander Bank [5] - The company aims to cross the $100 million EBITDA milestone in 2025 [8] Management Commentary on Operating Environment and Future Outlook - Management highlighted the negative impact of currency devaluation on USD-denominated results but noted accelerated growth in local currencies [4] - The company expects to continue subscriber growth at 35,000 to 40,000 net new subscribers per quarter and maintains its full-year EBITDA guidance of $90 million to $95 million for 2024 [8] - Management anticipates long-term growth in revenue and profitability due to operating leverage and growing subscriber base [10] Other Important Information - The company declared a quarterly dividend of $8 million, a 60% increase YoY, with a dividend yield of over 6% [9][13] - Cash flow from operations was $22.9 million, and the net cash position stood at $63.1 million as of June 30, 2024 [13] Q&A Session Summary Question: What contributed to the stronger product growth this quarter? - The growth was mainly driven by the company's subsidiary, DRM, which had a strong quarter in hardware sales [14] Question: Are there any pricing pressures in the current macro environment? - No significant pricing pressures were observed, as the average ARPU is low, and hardware margins are already minimal [15] Question: Why was the aftermarket and OEM subscriber breakout not provided this quarter? - The company does not consistently provide this breakdown, and the differences were more balanced this quarter [16] Question: What is the outlook for product sales growth? - Product sales growth is expected to remain volatile due to inventory decisions and is best judged on an annual basis [17][18] Question: Can you provide more insights into the new motorcycle product? - The product is gaining traction in Brazil, targeting insurance companies and OEMs, with potential for significant growth in the next 1-2 years [21][22] Question: How should investors view growth going into 2025? - Investors should focus on EBITDA growth, with a goal of reaching $100 million in 2025, though currency fluctuations may impact this target [24][25] Question: Why did ARPU decline this quarter? - The decline was primarily due to currency depreciation, as ARPU in local currencies actually increased [28]

Exhibit 99.1 ITURAN PRESENTS SECOND QUARTER 2024 RESULTS Continued strong profitability and reiterates guidance; Declares an $8 million dividend for the second quarter of 2024 AZOUR, Israel – August 19, 2024 – Ituran Location and Control Ltd. (NASDAQ: ITRN) today announced its consolidated financial results for the second quarter 2024. Eyal Sheratzky, Co-CEO of Ituran said, "We are pleased with our second quarter results with continued solid growth in the subscriber base and ongoing strong financial perform ...

Continued strong profitability and reiterates guidance; Declares an $8 million dividend for the second quarter of 2024 AZOUR, Israel, Aug. 19, 2024 /PRNewswire/ -- Ituran Location and Control Ltd. (NASDAQ: ITRN) today announced its consolidated financial results for the second quarter 2024. Highlights of the Second Quarter of 2024 Number of subscribers reached 2,329,000, adding a net 38,000 in the second quarter. Revenue of $84.9 million, an increase of 4% year-over-year. Net income increased to $13.1 milli ...

AZOUR, Israel, July 18, 2024 /PRNewswire/ -- Ituran Location and Control Ltd. (NASDAQ: ITRN), announced that it will be releasing its second quarter 2024 results on Monday, August 19, 2024. | --- | --- | |-----------------|----------------------------------| | | | | Company Contact | International Investor Relations | | Udi Mizrahi | Ehud Helft | | | | (US) +1 212 378 8040 [email protected] To participate, please call one of the following teleconferencing numbers. Please begin placing your calls a few minut ...

AZOUR, Israel, May 28, 2024 /PRNewswire/ -- Ituran Location and Control Ltd. (NASDAQ: ITRN) announced that the Board of Directors approved the distribution of a cash dividend in the amount of $0.39 per share, totaling approximately US$ 8 million. The dividend will be paid to shareholders of record as of June 18, 2024. The Company will pay the dividend out on July 2, 2024 net of taxes at the rate of 25%. SOURCE Ituran Location and Control Ltd. | Company Contact | International Investor Relations | | --- | -- ...

Record revenue and continued strong profitability; reiterates guidance and declares an $8 million dividend for the first quarter of 2024 AZOUR, Israel, May 28, 2024 /PRNewswire/ -- Ituran Location and Control Ltd. (NASDAQ: ITRN) today announced its consolidated financial results for the first quarter 2024. Highlights of the first quarter of 2024 Guidance for 2024 Overall, looking ahead to 2024, management reiterates its expectations for continued revenue growth and profitability throughout the year. Managem ...

Conference Call Scheduled at 10am ETAZOUR, Israel, May 6, 2024 /PRNewswire/ --  Ituran Location and Control Ltd. (NASDAQ: ITRN), announced that it will be releasing its first quarter 2024 results on Tuesday, May 28, 2024.The Company will be hosting a conference call later that day at 10am Eastern Time. On the call, management will review and discuss the results, and will be available to answer investor questions.To participate, please call one of the following teleconferencing numbers. Please begin placing ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of ...

MIAMI, April 15, 2024 /PRNewswire/ -- Ituran Location and Control (NASDAQ: ITRN) added $8 million to its dividend pool after a strong Q4, pushing its forward-looking yield to 6%. That attractive yield comes after the company posted record across-the-board financial metrics, including a 9% revenue increase year-over-year to $320 million, net income of $48 million, an increase of 30% year-over-year, and a 10% increase in EBITDA to $87 million. As of last Friday's close, ITRN's market cap is about $521 million ...