HAIFA, Israel - Elbit Systems Ltd. (NASDAQ:ESLT) shares jumped 2.95% after the defense technology company reported third quarter results that exceeded analyst estimates on both the top and bottom lines.
The Israeli defense contractor posted adjusted earnings per share of $2.21, handily beating the consensus forecast of $1.72. Revenue rose 14.4% year-over-year to $1.72 billion, also surpassing expectations of $1.63 billion.
Elbit's strong performance was driven by increased demand across multiple segments. Aerospace revenues grew 7% compared to Q3 2023, while the Land division saw a 24% jump in sales due to higher ammunition and munition orders in Israel. The company's U.S. subsidiary, Elbit Systems of America, reported a 17% revenue increase on higher night-vision system and medical instrumentation sales.
"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," said CEO Bezhalel Machlis.
The company's order backlog hit a record $22.1 billion as of September 30, up from $21.1 billion at the end of 2023. Machlis noted this provides "stability and resilience for the Company for years to come."
Elbit said it has experienced materially increased demand for its products from the Israeli Ministry of Defense since the outbreak of the Israel-Hamas war in October. While some operations have faced disruptions, the company has taken steps to protect employees and mitigate supply chain issues.
Looking ahead, Elbit expects the heightened demand from Israel to potentially generate additional material orders, though it cautioned the full impact of the ongoing conflict remains difficult to predict.
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