Elbit Systems (NASDAQ:ESLT) Posts Quarterly Earnings Results, Beats Estimates By $0.45 EPS

Elbit Systems (NASDAQ:ESLT) posted its quarterly earnings data on Tuesday. The aerospace company reported $4.14 earnings per share for the quarter, beating the consensus estimate of $3.69 by $0.45, FiscalAI reports. The company had revenue of $2.29 billion during the quarter, compared to analyst estimates of $2.25 billion. Elbit Systems had a net margin of 7.14% and a return on equity of 16.15%.

Here are the key takeaways from Elbit Systems’ conference call:

• Elbit reported strong second-quarter growth, with revenue up 15.9% year over year to $2.29 billion, non-GAAP operating margin expanding to 10.4%, and non-GAAP diluted EPS rising 28% to $4.14.
• Backlog reached a record $32 billion, up 34% year over year, with 73% generated outside Israel and approximately 42% scheduled for delivery through 2027, providing significant revenue visibility.
• Management cited robust international demand, particularly in Europe and the U.S., supported by major awards including a $1.4 billion European modernization program, a $750 million Greek PULS contract, and U.S. awards totaling hundreds of millions of dollars.
• The company increased internally funded capital investment plans from $220 million to approximately $300 million to expand production, robotics, and AI capabilities; management also said customers are increasingly matching or fully funding capacity investments.
• Higher taxes, primarily from OECD Pillar Two global minimum-tax rules, lifted the effective tax rate to 16.4% from 5.6% a year earlier, while Aerospace revenue declined 8% due to unfavorable project mix and weaker European training and simulation sales.

Elbit Systems Trading Down 7.4%

Elbit Systems stock traded down $62.63 during midday trading on Tuesday, reaching $783.41. The stock had a trading volume of 83,472 shares, compared to its average volume of 132,130. The firm’s fifty day simple moving average is $796.99 and its two-hundred day simple moving average is $808.39. Elbit Systems has a twelve month low of $432.85 and a twelve month high of $1,016.06. The company has a debt-to-equity ratio of 0.06, a current ratio of 1.41 and a quick ratio of 0.86. The firm has a market cap of $34.82 billion, a price-to-earnings ratio of 63.47, a PEG ratio of 3.65 and a beta of 0.17.

Elbit Systems Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, July 6th. Investors of record on Tuesday, June 23rd were paid a $1.00 dividend. The ex-dividend date of this dividend was Tuesday, June 23rd. This represents a $4.00 dividend on an annualized basis and a yield of 0.5%. Elbit Systems’s dividend payout ratio (DPR) is currently 26.96%.

Wall Street Analysts Forecast Growth

Several research firms recently commented on ESLT. Zacks Research lowered shares of Elbit Systems from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, June 24th. JPMorgan Chase & Co. lifted their price target on shares of Elbit Systems from $930.00 to $950.00 and gave the stock a “neutral” rating in a research report on Wednesday, May 27th. Morgan Stanley set a $845.00 price target on Elbit Systems in a report on Wednesday, July 15th. Finally, Jefferies Financial Group cut their price objective on Elbit Systems from $950.00 to $880.00 and set a “hold” rating for the company in a research report on Wednesday, June 24th. Two equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $803.75.

Institutional Trading of Elbit Systems

A number of hedge funds have recently modified their holdings of the business. Wexford Capital LP purchased a new stake in shares of Elbit Systems in the third quarter valued at $63,000. Greenline Wealth Management LLC purchased a new position in shares of Elbit Systems during the fourth quarter valued at $85,000. Arax Advisory Partners raised its position in Elbit Systems by 25.0% during the fourth quarter. Arax Advisory Partners now owns 150 shares of the aerospace company’s stock valued at $87,000 after buying an additional 30 shares during the period. Gen Wealth Partners Inc raised its position in Elbit Systems by 72.0% during the fourth quarter. Gen Wealth Partners Inc now owns 160 shares of the aerospace company’s stock valued at $92,000 after buying an additional 67 shares during the period. Finally, EverSource Wealth Advisors LLC lifted its stake in Elbit Systems by 57.8% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 232 shares of the aerospace company’s stock worth $104,000 after acquiring an additional 85 shares in the last quarter. Hedge funds and other institutional investors own 17.88% of the company’s stock.

About Elbit Systems

Elbit Systems Ltd. is an Israel-based defense electronics company that designs, develops and supplies a broad range of systems for military, homeland security and commercial aviation customers. The company focuses on integrated, platform-level solutions that combine sensors, communications, command-and-control software and weapons integration to support intelligence, surveillance and reconnaissance (ISR), force protection and mission management.

Its product and service portfolio spans unmanned aircraft systems, electro-optic and signal intelligence systems, electronic warfare and communications equipment, avionics and mission systems for military and commercial aircraft, and land and naval systems.