OAKLAND, Calif. - Iteris , Inc. (NASDAQ: NASDAQ:ITI), recognized for its smart mobility infrastructure management technology, has been awarded a $3.75 million contract by the Metropolitan Transportation Commission (MTC) for continued support of the 511 traveler information system in the San Francisco Bay Area.
The company, which has been operating the 511 Traveler Information telephone system since 2016, will extend its services for an additional three years, maintaining the 511 SF Bay Interactive Voice Response (IVR) phone system and providing operations support services across the nine-county region.
Iteris' relationship with MTC also includes a four-year, $13.3 million contract extension secured last year for operational staffing services for 511 and Express Lanes.
Nationally, Iteris has implemented seven statewide and regional systems, positioning itself as a leader in traveler information services that offer real-time traffic and incident data to help travelers make informed decisions.
Dr. Moe Zarean, general manager of mobility operations services at Iteris, expressed pride in the ongoing partnership with MTC and committed to delivering high-quality service and improvements in operational performance, mobility, and sustainability over the next three years.
The announcement of the contract comes with a reminder of Iteris' broader role in the transportation sector. Its ClearMobility® Platform delivers AI-powered solutions to monitor, visualize, and optimize mobility infrastructure worldwide, supporting over 10,000 public agencies and private-sector enterprises.
This news is based on a press release statement and reflects the current expectations and projections of Iteris regarding the contract and its services. It should be noted that forward-looking statements are subject to risks, uncertainties, and assumptions, and actual results may differ from those anticipated.
These statements do not guarantee future performance and are influenced by various factors, including economic, political, and market conditions, as well as competitive pressures.
In other recent news, smart mobility infrastructure management company, Iteris, has announced a series of developments. The company secured a five-year contract worth up to $2 million from the Texas Department of Transportation to enhance traffic signal operations in Houston. This marks the continuation of a long-standing collaboration between the two parties.
Iteris also reported a slight revenue increase of 0.7% year-over-year in its fiscal fourth-quarter, reaching $42.8 million. However, its adjusted earnings fell short at $2.8 million compared to the anticipated $3.1 million consensus. Following these results, B.Riley adjusted the price target for Iteris to $8.00, down from the previous $8.50, while maintaining a Buy rating on the stock.
Furthermore, Iteris has entered into a strategic partnership with Sumitomo Electric Industries, which is expected to double the company's total addressable market for detection solutions. Despite a decrease in product sales, the company reported an increase in service revenues.
Looking ahead, Iteris expects organic revenue growth and enhanced adjusted EBITDA margins for fiscal 2025, with revenue projected to be between $188 million and $194 million. These are the recent developments for Iteris.
InvestingPro Insights
As Iteris, Inc. (NASDAQ: ITI) secures a new contract to bolster its presence in the smart mobility infrastructure management sector, investors and stakeholders might be keen on understanding the financial health and market performance of the company. According to recent data from InvestingPro, Iteris holds a market capitalization of $202.57 million, indicating its size and significance within its industry. The company's price-to-earnings (P/E) ratio stands at 65.21, which suggests a higher valuation compared to earnings. However, when adjusted for the last twelve months as of Q4 2024, the P/E ratio is more favorable at 36.33, paired with a promising PEG ratio of 0.54, indicating potential for growth relative to earnings.
From an operational standpoint, Iteris has demonstrated a solid financial structure, as highlighted by two InvestingPro Tips. Firstly, the firm holds more cash than debt on its balance sheet, which can be an indicator of financial stability and flexibility. Additionally, analysts predict that the company will be profitable this year, which is corroborated by the fact that Iteris has been profitable over the last twelve months. This profitability is backed by a gross profit of $64.59 million and a gross profit margin of 37.55% for the same period.
For those seeking more comprehensive analysis and insights, there are additional InvestingPro Tips available, which can be accessed through the InvestingPro platform. For example, while two analysts have revised their earnings downwards for the upcoming period, the company is still trading at a low P/E ratio relative to near-term earnings growth, which could be of interest to value investors. To explore these insights in greater depth, readers can utilize the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
Iteris' continued engagement with the MTC and its expanding footprint in mobility infrastructure management positions it as a notable player in the sector. The financial metrics and InvestingPro Tips provided offer a snapshot of the company's performance and outlook, which could be valuable for investors making informed decisions in the dynamic transportation technology market.
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