Israel's Elbit Systems Q4 revenue rises, sees strong defence demand amid Middle East conflicts

Reuters03-17
Israel's Elbit Systems Q4 revenue rises, sees strong defence demand amid Middle East conflicts

Overview

  • Israel defense technology firm's Q4 revenue rose 11% yr/yr amid strong demand

  • Adjusted EPS for Q4 increased to $3.56 from $2.66 a year earlier

  • Company attributes results to higher demand, especially from Israel Ministry of Defense

Outlook

  • Company expects continued elevated demand from Israel Ministry of Defense due to ongoing regional conflicts

  • Elbit Systems says operational disruptions from conflicts have been reduced, but risks remain if escalation resumes

Result Drivers

  • SEGMENT GROWTH - Q4 revenue growth was led by higher sales in C4I and Cyber, ISTAR and EW, and Land segments, particularly in Europe and Israel

  • AEROSPACE DECLINE - Aerospace segment revenue fell 14% due to lower training and simulation sales in Europe and a high base of Precision Guided Munition sales in Q4 2024

  • SUPPLY CHAIN IMPACTS - Company experienced operational disruptions and higher costs due to Middle East conflicts, but took steps to mitigate supply chain challenges

Company press release: ID:nPn9MkRQWa

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

$2.15 bln

Q4 Adjusted EPS

$3.56

Q4 EPS

$3.52

Q4 Adjusted Gross Profit

$536.30 mln

Q4 Adjusted Operating Income

$210.80 mln

Q4 Gross Profit

$529.80 mln

Q4 Operating Income

$192.50 mln

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the aerospace & defense peer group is "buy."

  • Wall Street's median 12-month price target for Elbit Systems Ltd is $579.75, about 33.7% below its March 16 closing price of $874.50

  • The stock recently traded at 65 times the next 12-month earnings vs. a P/E of 35 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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