Ituran Location and Control rises on Q3 revenue beat

Ituran Location and Control Ltd. (Nasdaq: ITRN) shares are up after the provider of stolen vehicle recovery and tracking services reported third-quarter revenue of $31.6 million, beating analyst estimates of $31 million and up 22% from $26 million a year earlier.

The Israel-based firm’s quarterly profit fell 27% to $3.6 million, or $0.16 per share, below Wall Street projections of $0.19 per share and compared with $4.9 million, or $0.21 per share, during the year-ago period. The company’s gross profit rose 10% to $14 million from $12.7 million.

Ituran’s quarterly earnings were lowered by the devalued U.S. dollar against the Israeli shekel, increased labor costs and increased investment in sales and marketing for its GPS device.

“2007 was a year in which we made a number of investments for our continued future growth. While we have seen a strong increase in revenues, our expenses did rise throughout the year, pressuring our margins,” Eyal Sheratzky, co-CEO of Ituran, said in a statement. “In 2008, we expect to see the fruits of our efforts in 2007, with bottom-line and top-line growth. We are also in a stronger financial position to pursue acquisitions that will expand our global reach.”

In afternoon trading, ITRN shares are up 2.14%, or $0.23, at $10.97. Over the last 52 weeks, shares have ranged from $10.06 to $17.05.

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