Elbit Systems (NASDAQ:ESLT) Issues Earnings Results

Elbit Systems (NASDAQ:ESLT) issued its earnings results on Tuesday. The aerospace company reported $4.14 earnings per share for the quarter, topping analysts’ consensus estimates of $3.69 by $0.45, FiscalAI reports. Elbit Systems had a net margin of 7.44% and a return on equity of 16.94%. The firm had revenue of $2.29 billion during the quarter, compared to analyst estimates of $2.25 billion.

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 Price Performance

ESLT stock traded down $2.63 during midday trading on Thursday, reaching $776.88. The company had a trading volume of 26,675 shares, compared to its average volume of 132,033. The firm has a 50-day moving average price of $794.53 and a 200-day moving average price of $809.34. The company has a market capitalization of $34.53 billion, a P/E ratio of 58.53, a P/E/G ratio of 3.29 and a beta of 0.17. Elbit Systems has a 1 year low of $447.00 and a 1 year 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.

Elbit Systems Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, October 26th. Shareholders of record on Tuesday, October 13th will be paid a $1.00 dividend. This represents a $4.00 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend is Tuesday, October 13th. Elbit Systems’s payout ratio is currently 26.96%.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the stock. Zacks Research lowered shares of Elbit Systems from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, June 24th. Jefferies Financial Group decreased their price objective on Elbit Systems from $950.00 to $880.00 and set a “hold” rating on the stock in a research note on Wednesday, June 24th. Weiss Ratings downgraded Elbit Systems from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday. Morgan Stanley set a $845.00 price target on Elbit Systems in a research report on Wednesday, July 15th. Finally, JPMorgan Chase & Co. raised their price objective on shares of Elbit Systems from $930.00 to $950.00 and gave the company a “neutral” rating in a research report on Wednesday, May 27th. One equities research analyst has rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, Elbit Systems currently has a consensus rating of “Hold” and a consensus price target of $803.75.

Institutional Trading of Elbit Systems

Hedge funds have recently made changes to their positions in the stock. Royal Bank of Canada increased its stake in Elbit Systems by 98.9% in the first quarter. Royal Bank of Canada now owns 2,464 shares of the aerospace company’s stock valued at $946,000 after acquiring an additional 1,225 shares during the last quarter. AQR Capital Management LLC bought a new stake in Elbit Systems during the first quarter worth about $353,000. NewEdge Advisors LLC boosted its holdings in shares of Elbit Systems by 3,461.1% in the 1st quarter. NewEdge Advisors LLC now owns 641 shares of the aerospace company’s stock worth $246,000 after purchasing an additional 623 shares in the last quarter. Goldman Sachs Group Inc. increased its position in shares of Elbit Systems by 33.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 135,106 shares of the aerospace company’s stock valued at $51,837,000 after purchasing an additional 34,049 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Elbit Systems by 7.8% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 16,521 shares of the aerospace company’s stock valued at $6,339,000 after purchasing an additional 1,191 shares during the last quarter. 17.88% of the stock is owned by institutional investors.

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.