Shares of Ituran Location and Control (ITRN) plummeted 7.99% in pre-market trading on Tuesday following the release of disappointing second-quarter financial results. The Israel-based provider of location-based services and wireless communications products reported figures that fell short of analyst expectations, compounded by the impact of regional conflicts.

Ituran's Q2 revenue came in at $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 significant 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 the 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 the market opens, all eyes will be on how Ituran navigates these headwinds and whether it can recover from this setback in the face of both financial misses and geopolitical challenges.