Ituran Stock Gains As Q2 Result Tops Estimates - Ituran Location & Control (NASDAQ:ITRN)

Ituran Location and Control Ltd ITRN reported second-quarter FY21 sales growth of 26.5% year-on-year, to $67.46 million, beating the analyst consensus of $65.85 million.
Location-based service subscription fees accounted for 70% of total revenues, and product revenues constituted 30%.
Revenues from subscription fees rose 7% Y/Y to $46.9 million. The subscriber base was 1.81 million as of June 30, 2021.
Product revenues surged 114% to $20.5 million, as Q2 2020 was impacted due to the Covid-related economic shutdowns.
Gross profit for the quarter was rose 11% Y/Y to $30.8 million, with the margin contracting 620 basis points to 45.7%.
The operating margin was 20.4%, and operating income for the quarter totaled $13.8 million compared to a loss of $(4.9) million in Q2 FY20.
Cash flow from operations amounted to $19 million in Q2.
EBITDA of $18.2 million increased 30% Y/Y.
EPS of $0.44 beat the analyst consensus of $0.39.
The company held $65.6 million in cash and equivalents as of June 30, 2021.
On August 4, 2021, Ituran decided to continue executing the $19 million remainder of a $25 million share buy-back program first announced in 2019.
Price Action: ITRN shares are trading higher by 2.79% at $25.79 on the last check Monday.