AZOUR, Israel - Ituran Location and Control Ltd. (NASDAQ:ITRN), in collaboration with Microsoft (NASDAQ:MSFT) and Porsche, has launched a real-time data telemetry technology for the Porsche Carrera Cup motor race series, aiming to enhance team performance and safety.
The technology, which is now fully operational in Brazil, Argentina, and Portugal for the 2024 season, provides live data transmission to the Microsoft Azure cloud, enabling teams to make strategic decisions during races.
The Porsche Carrera Cup features high-performance Porsche 911 GT3 sports cars, emphasizing the drivers' skill and the teams' strategic capabilities. The integration of Ituran's telematics devices allows for the collection and real-time transmission of telemetry data over the public mobile network to the cloud, offering teams the ability to make informed decisions instantly.
Eyal Sheratzky, CEO of Ituran, expressed pride in the company's role in this innovative initiative, highlighting the collaboration with Porsche and Microsoft as a testament to Ituran's technological leadership. The project is seen as transformative for the Porsche Carrera Cup, providing teams with instant, data-driven insights crucial for race outcomes.
Ituran, a leader in mobility technology, offers a range of location-based services, including solutions for the connected-car, Stolen Vehicle Recovery, and fleet management. The company boasts over 2.3 million subscribers and holds a market-leading position in Israel and Latin America. Ituran's growth since its establishment in 1995 has been significant, with a global presence and a diverse employee base.
This partnership signifies a convergence of sports and technology, with the potential to change the motorsport landscape by enabling data-driven performance optimization. The collaboration is based on a press release statement.
In other recent news, Ituran Location and Control Ltd. reported a robust first quarter in 2024 with significant increases in both revenue and net income. The company added 39,000 net new subscribers during the quarter, meeting the high end of its expectations. This growth was largely due to its diverse service offerings and global presence, particularly in the Israeli market where increased theft rates have led to higher demand for Ituran's services.
In terms of financials, the company reported a 7% year-over-year increase in revenue, amounting to $85 million, with subscription fees contributing $60.9 million. Net income saw a 15% rise, reaching $13 million, and the company declared an $8 million quarterly dividend. Ituran also reaffirmed its full-year EBITDA guidance of $90 million to $95 million, with expectations to surpass $100 million in 2025.
Despite lower gross margins for products due to the mix of products sold across different regions, the company's growth in Israel exceeded expectations. Moreover, Ituran is experiencing growth in Brazil, driven by a contract with Santander (BME:SAN) Bank and ongoing retail solutions. The company expects continued growth in subscriber numbers at current rates, assuming stable currency levels and no significant worsening of the global macroeconomic or political situation in Israel.
InvestingPro Insights
Ituran Location and Control Ltd. (NASDAQ:ITRN) has not only expanded its technological horizons through partnerships with giants like Microsoft and Porsche but also presents a robust financial picture that is worth noting. As the company forges ahead with its real-time data telemetry technology in the competitive motorsport arena, several metrics underscore its financial health and investor appeal.
With a market capitalization of $522.41 million, Ituran showcases a strong balance sheet, as reflected in one of the InvestingPro Tips: the company holds more cash than debt. This financial stability is a significant factor when considering the company's capacity to invest in new technologies and expand its market reach. Furthermore, Ituran's commitment to shareholder returns is evident, with a history of maintaining dividend payments for 19 consecutive years and a generous dividend yield of 5.94% as of the latest data.
The company's valuation metrics are equally compelling. Ituran trades at a low P/E ratio of 10.53, suggesting that its stock may be undervalued relative to its near-term earnings growth. Moreover, the PEG ratio of 0.37 indicates that the company's earnings growth could outpace its P/E ratio, which could be attractive to value investors looking for growth potential at a reasonable price.
These financial indicators, along with the InvestingPro Tips that Ituran has a perfect Piotroski Score of 9 and is trading at a low P/E ratio relative to near-term earnings growth, paint a picture of a company that is not only innovating in its product offerings but also managing its finances prudently. For investors interested in delving deeper into Ituran's financial health and growth prospects, there are additional InvestingPro Tips available, which can be explored further at InvestingPro's dedicated page for Ituran (https://www.investing.com/pro/ITRN).
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