Shares of Ituran Location and Control (ITRN) plummeted 7.99% in pre-market trading on Tuesday following the release of its second-quarter financial results that fell short of analyst expectations. The Israel-based provider of location-based services and wireless communications products faced significant challenges, including the impact of a regional conflict.

Ituran reported Q2 revenue of $86.8 million, missing the analyst estimate of $90.94 million. Earnings per share (EPS) for the quarter stood at $0.67, also falling short of the expected $0.71. The company's product revenues took a particular hit, declining 6% year-over-year to $23.0 million. This underperformance was largely attributed to the cessation of new sales during a 12-day war between Israel and Iran in the second quarter, highlighting the geopolitical risks facing the company.

Despite these challenges, Ituran maintained its quarterly dividend at $0.50 per share, totaling a $10 million distribution for Q2 2025. The company also reiterated its expectations to grow its subscriber base by 220,000-240,000 net in 2025, signaling some optimism for future growth. However, investors seemed to focus on the immediate shortfall, leading to the significant pre-market decline. As trading begins, market participants will be closely watching how Ituran navigates these headwinds and whether it can recover from this setback.