Ituran Location and Control Ltd. (NASDAQ:ITRN) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasts think of the company following this report. Ituran Location and Control reported US$336m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$2.70 beat expectations, being 2.0% higher than what the analyst expected. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

See our latest analysis for Ituran Location and Control

After the latest results, the single analyst covering Ituran Location and Control are now predicting revenues of US$358.9m in 2025. If met, this would reflect a satisfactory 6.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 8.0% to US$2.91. In the lead-up to this report, the analyst had been modelling revenues of US$359.3m and earnings per share (EPS) of US$2.84 in 2025. So the consensus seems to have become somewhat more optimistic on Ituran Location and Control's earnings potential following these results.

The analyst has been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 20% to US$44.35.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analyst, with revenue forecast to display 6.7% growth on an annualised basis. That is in line with its 6.1% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 7.9% per year. So although Ituran Location and Control is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Ituran Location and Control following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Ituran Location and Control going out as far as 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Ituran Location and Control you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.