) is a Zacks #1 Rank (Strong Buy) due to its solid history of
positive earnings surprises.
Ituran provides location-based services and wireless communications
products in Israel, Brazil, Argentina, and the United States. It
offers stolen vehicle recovery services, including locating,
tracking, and recovering stolen vehicles and fleet management
services which enable corporate customers to track and manage
vehicles in real time.
Six Straight Earnings Surprises
ITRN has produced a solid history of six straight positive earnings
surprises. While none of the beats are more than $0.04, the
smallest beat was the most recent of $0.01 or 3.5%. The other
smallest percentage beat is the 6.9% beat for the June 2011 quarter
when the company reported earnings $0.02 ahead of the Zacks
Two earnings beats were double digit beats, in terms of percentage
ahead of the Zacks Consensus Estimate. The March 2011 earnings of
$0.31 was $0.03 ahead of the estimate or a beat of roughly 11%. The
September 2011 quarter saw earnings of $0.32, $0.04 or 14% above
the Zacks Consensus Estimate.
ITRN Recent Earnings
On February 22, 2012 the company reported earnings of $0.29 per
share and sales of $37 million. In the year ago period, the company
reported $0.28 per share and $41 million in revenue.
ITRN trades at a discount when compared to industry average PE's,
but a premium to other metrics. The premium for forward earnings of
10.5x is a small discount to the 10.9x industry average. The twelve
month trailing PE of 11x for ITRN hold a bigger discount to the
industry average of 20x. In terms of price to book, the 3x multiple
is a premium to the 2.3x industry average. The price to sales
metric also carries a premium to the industry average.
The price and consensus chart tells us that investors are closely
following the earnings estimate expectations for ITRN. The stock
does appear to have been trading above expectations in late 2010,
but has since returned to more palatable levels. When the stock is
well below where the future earnings estimates lines are, we view
that as a sign of being undervalued. ITRN is a Zacks #1 Rank
Brian Bolan is the Aggressive Growth Stock Strategist for
Zacks.com. He is also the Editor in charge of the
Run Investor service
ITURAN LOCATION (
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