Elbit Systems Crushes Q3 Expectations Boosted By Global Defense Demand

Benzinga11-19

Elbit Systems Ltd. (NASDAQ:ESLT) shares are trading higher premarket on Tuesday after it reported third-quarter revenue of $1.718 billion, beating the consensus of $1.608 billion.

Segment revenues (year over year): Aerospace $492.2 million, +7%), C4I and Cyber $213.4 million (+13%), ISTAR and EW $323.9 million (+13%), Land $421.8 million (+24%) and Elbit Systems of America (ESA) $416.6 million (+17%).

Adjusted gross margin contracted to 24.4% from 24.9% a year ago, and adjusted operating margin stood at 8.2% (vs. 8.0% a year ago) in the quarter.

Adjusted EPS rose to $2.21 from $1.71 a year ago, beating the consensus of $1.86.

ESLT’s backlog of orders, as of September-end, totaled $22.1 billion. Operating cash flow stood at $82.5 million in nine months ended September 30.

Bezhalel (Butzi) Machlis, President and CEO, said, “Elbit Systems reports a strong quarter, with substantial growth across key performance measures exceeding our internal goals, while meeting our customers’ needs in Israel and worldwide.”

Dividend: The company declared a dividend of $0.50 per share, payable on January 6 to the shareholders of record date on December 23.

Yesterday, Elbit Systems secured $335 million in contracts to supply a European country with PULS rocket launchers, rockets, and Hermes 900 UAS equipped with advanced payloads.

Last month, Elbit Systems secured a $200 million contract with the Israeli Ministry of Defense for high-power lasers in the “Iron Beam” air defense system.

Price Action: ESLT shares are up 3.77% at $244.00 premarket at the last check Tuesday.

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