Shares of Ituran Location and Control Ltd (ITRN) plummeted 8.26% in early trading on Wednesday, despite the company reporting strong first-quarter results and announcing a dividend distribution. The sharp decline caught investors off guard, as the Israel-based provider of location-based services and Internet of Vehicle solutions appeared to deliver positive news.

Ituran reported first-quarter revenue of $86.5 million, with net income reaching $14.6 million, or $0.73 per share. The company's EBITDA for the quarter stood at $23.3 million, while operating income came in at $18.7 million. Additionally, Ituran's Board of Directors approved a cash dividend of $0.50 per share, totaling approximately $10 million, to be paid out on July 2, 2025.

Despite these seemingly positive results, investors appeared to focus on other factors driving the stock lower. One potential concern could be the sustainability of growth, even as the company increased its expectations for 2025 subscriber growth to between 220,000 and 240,000 net new subscribers. The market's reaction suggests that investors may have been expecting even stronger results or guidance, or there could be underlying concerns about the company's long-term prospects in the competitive connected-car and location-based services market.