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Elbit Systems posts better-than-expected Q1 results

EditorRachael Rajan
Published 2024-05-28, 07:02 a/m
© Reuters.
ESLT
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HAIFA, Israel - Elbit Systems Ltd. (NASDAQ: NASDAQ:ESLT), a leading defense technology company, announced a robust financial performance for the first quarter ended March 31, 2024.

The company reported adjusted earnings per share (EPS) of $1.81, which exceeded analyst expectations by $0.48, and a consensus estimate of $1.33. Revenue for the quarter was also higher than anticipated, coming in at $1.55 billion against the consensus estimate of $1.49 billion.

The company's order backlog reached a record $20.4 billion, reflecting the increased global defense budgets and the demand for Elbit Systems' advanced technological solutions. Despite the impressive financial results, Elbit Systems' stock experienced a slight decline of 1.9% following the earnings release.

President and CEO Bezhalel (Butzi) Machlis commented on the results, emphasizing the significant growth in the company's order backlog and the positive impact on revenues and growth. Machlis attributed the successful quarter to the company's strategic long-term plans and its commitment to meeting customer needs.

Compared to the first quarter of 2023, Elbit Systems' revenues saw an increase from $1.39 billion, marking a YoY growth. The company's financial performance was particularly strong in the C4I and Cyber segment with a 12% increase, ISTAR and EW segment with a 17% increase, and the Land segment with a 26% increase, mainly driven by sales in Israel.

Elbit Systems' non-GAAP gross profit for the quarter was $383.4 million, or 24.7% of revenues, compared to $369.0 million, or 26.5% of revenues, in the same period last year. GAAP gross profit was $374.1 million, or 24.1% of revenues, compared to $361.5 million, or 25.9% of revenues, in the first quarter of 2023.

The company's non-GAAP operating income was $121.6 million, or 7.8% of revenues, compared to $108.5 million, or 7.8% of revenues, in the first quarter of 2023. GAAP operating income for the quarter was $105.4 million, or 6.8% of revenues, compared to $93.9 million, or 6.7% of revenues, in the same period last year.

Elbit Systems also declared a dividend of $0.50 per share, with a record date of June 18, 2024, to be paid on July 1, 2024.

The company's financial strength is further underscored by recent contract awards, including a $50 million contract for the "Red Sky" air defense system and a $37 million contract to supply Iron Fist Active Protection Systems to the U.S. Army's Bradley M2A4E1 Infantry Fighting Vehicles.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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