Ituran Location and Control Ltd. Just Reported, And Analysts Assigned A US$25.50 Price Target

It's been a mediocre week for Ituran Location and Control Ltd. (NASDAQ:ITRN) shareholders, with the stock dropping 16% to US$19.46 in the week since its latest full-year results. It was an okay report, and revenues came in at US$279m, approximately in line with analyst estimates leading up to the results announcement. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what analysts are expecting for next year.

See our latest analysis for Ituran Location and Control

Taking into account the latest results, the one analyst covering Ituran Location and Control provided consensus estimates of US$268.5m revenue in 2020, which would reflect a perceptible 3.9% decline on its sales over the past 12 months. Before this earnings result, analysts had predicted US$267.9m revenue in 2020, although there was no accompanying EPS estimate. Overall it looks like Ituran Location and Control is performing in line with analyst expectations, given analysts have updated their numbers and there's been no real change to next year's forecast following these results.

The average analyst price target fell 11% to US$25.50, with analysts clearly having become less optimistic about Ituran Location and Control's prospects following its latest earnings.

Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. We would highlight that sales are expected to reverse, with the forecast 3.9% revenue decline a notable change from historical growth of 11% over the last five years. Compare this with our data, which suggests that other companies in the same market are, in aggregate, expected to see their revenue grow 3.4% next year. It's pretty clear that Ituran Location and Control's revenues are expected to perform substantially worse than the wider market.

The Bottom Line

Probably the biggest thing to take away from these latest forecasts is that brokers are definitely optimistic on the business, given the forecast for profitability next year. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Ituran Location and Control's revenues are expected to perform worse than the wider market. Analysts also downgraded their price target, suggesting that the latest news has led analysts to become more pessimistic about the intrinsic value of the business.

One Ituran Location and Control broker/analyst has provided estimates out to 2021, which can be seen for free on our platform here.

You can also see whether Ituran Location and Control is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.