Ituran Location and Control Ltd. (NASDAQ:ITRN) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of US$105m arriving 4.9% ahead of forecasts. Statutory earnings per share (EPS) were US$0.88, 2.3% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Following the latest results, Ituran Location and Control's two analysts are now forecasting revenues of US$419.4m in 2026. This would be an okay 6.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 10.0% to US$3.54. In the lead-up to this report, the analysts had been modelling revenues of US$409.3m and earnings per share (EPS) of US$3.50 in 2026. There doesn't appear to have been a major change in sentiment following the results, other than the slight bump in revenue estimates.

The analysts increased their price target 16% to US$73.50, perhaps signalling that higher revenues are a strong leading indicator for Ituran Location and Control's valuation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Ituran Location and Control's growth to accelerate, with the forecast 14% annualised growth to the end of 2026 ranking favourably alongside historical growth of 7.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Ituran Location and Control is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also upgraded their revenue forecasts, although the latest estimates suggest that Ituran Location and Control will grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

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.