Earnings Preview for Ituran Location & Control
Ituran Location & Control (NASDAQ: ITRN) releases its next round of earnings this Wednesday, November 18. Here is Benzinga's essential guide to Ituran Location & Control's Q3 earnings report.
Net Income, Earnings, And Earnings Per Share
Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
Earnings And Revenue
Sell-side analysts expect Ituran Location & Control's EPS to be near $0.3 on sales of $59.81 million. Ituran Location & Control earnings in the same period a year ago was $0.37 per share. Quarterly sales came in at $69.98 million.
Why Analyst Estimates And Earnings Surprises Are Important
Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.
If the company were to report earnings in line when it publishes results Wednesday, quarterly profit would be down 18.92%. Revenue would be down 14.53% on a year-over-year basis. Ituran Location & Control's reported EPS has stacked up against analyst estimates in the past like this:
EPS Estimate | 0.22 | 0.34 | 0.34 | 0.44 |
EPS Actual | 0.34 | 0.31 | 0.31 | 0.37 |
Revenue Estimate | 49.61 M | 64.10 M | 65.68 M | 70.09 M |
Revenue Actual | 53.31 M | 68.37 M | 66.18 M | 69.98 M |
Stock Performance
Shares of Ituran Location & Control were trading at $15.61 as of November 16. Over the last 52-week period, shares are down 36.71%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Ituran Location & Control is scheduled to hold the call at 09:00:00 ET and can be accessed here.
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