Ituran Clocks 11% Revenue Growth In Q4

Ituran Location And Control Ltd ITRN reported fourth-quarter FY21 sales growth of 10.6% year-on-year, to $70.36 million, marginally beating the consensus of $70.03 million.
Location-based service subscription fees constituted 69% of revenues, and 31% were from product revenues.
Revenues from subscription fees rose 7%, and Product revenues improved 21%.
The subscriber base rose 6.4% Y/Y to 1.88 million.
The gross profit increased 13% Y/Y to $33.4 million and the gross margin expanded by 110 basis points to 47.5%.
The operating margin extended 120 basis points to 20.2%, and operating income for the quarter rose 17% to $14.2 million.
EBITDA increased 14% Y/Y to $18.9 million.
EPS of $0.46 was in line with the consensus.
The company held $54.7 million in cash and equivalents as of December 31, 2021. The operating cash flow for the quarter totaled $16 million.
Outlook: Ituran Location sees FY22 subscriber base growth of 140,000 – 160,000.
Eyal Sheratzky, Co-CEO of Ituran, said, "Looking ahead, our well-above average subscriber-base growth throughout 2021 positions us exceptionally well to build on our profitable growth in 2022 and beyond."
Price Action: ITRN shares closed lower by 1.50% at $20.99 on Friday.

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