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TEL AVIV - On Tuesday, Ituran Location and Control Ltd. (NASDAQ:ITRN) reported third quarter revenue that exceeded analyst expectations, though earnings per share came in slightly below consensus. The company added 40,000 net new subscribers during the period, bringing its total subscriber base to 2.59 million.
Ituran posted revenue of $92.3 million for the quarter, surpassing the analyst estimate of $88.89 million and representing an 11% increase YoY. However, adjusted earnings per share of $0.74 missed the consensus forecast of $0.75 by $0.01.
Subscription fees, which accounted for 73% of total revenue, grew 13% YoY to $67.6 million. Product revenues increased 4% YoY to $24.7 million. The company’s subscriber base expanded by 219,000 compared to the same period last year.
"The third quarter marked a strong quarter for Ituran, in particular, we showed strong subscription revenue growth," said Eyal Sheratzky, Co-CEO of Ituran. "Ituran’s overall subscriber growth is being driven by our long-term efforts and success in bringing customers new value-adding telematics and connected-car products and services."
Gross profit for the quarter rose 16% to $46.4 million, with gross margin improving to 50.3% from 48.1% in the prior-year period. Operating income increased 7% to $19.6 million, while EBITDA grew 6% to $24.6 million.
The company declared a quarterly dividend of $0.50 per share, totaling $10 million. During the quarter, Ituran purchased $1.5 million in shares under its buyback program, with approximately $5.2 million remaining available.
Ituran also announced the launch of IturanMOB operations in the United States, expanding its smart-mobility solution for shared-mobility and rental-fleet applications beyond its initial success in Brazil.
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