Shares of Ituran Location and Control Ltd (NASDAQ: ITRN) soared 6.34% in pre-market trading on Wednesday, driven by the company's better-than-expected fourth quarter 2024 results and an increase in its quarterly dividend payout.
The Israel-based telematics services provider reported fourth quarter revenue of $82.9 million, up 7% year-over-year and beating consensus estimates of $81.8 million. Q4 net income rose 15% to $13.8 million or $0.70 per diluted share, exceeding analyst expectations of $0.68 per share. Ituran ended 2024 with over 2.4 million subscribers, adding 157,000 net new subscribers during the year.
Ituran's board approved a 25% increase in the quarterly dividend to $0.50 per share, or approximately $10 million in total. The higher dividend of $2 per share annually represents a yield of around 5% based on the stock's closing price on Tuesday.
Looking ahead, the company provided upbeat guidance, expecting to significantly accelerate subscriber growth to 180,000-200,000 net additions in 2025 as it continues launching new products and services. Management touted Ituran's strong business fundamentals and increasing demand for its location-based products across key markets like Israel and Latin America.
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