Shares of Israeli defense major Elbit Systems (NASDAQ:ESLT) are in focus today after the company announced its results for the third quarter and bagged a major contract from the U.S. Navy.
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In Q3, revenue increased by 11.3% year-over-year to $1.5 billion. Moreover, EPS of $1.65 comfortably outpaced expectations by $0.21. During the quarter, Aerospace revenue increased by 24%, primarily driven by training & simulation sales in Europe and UAS sales in the Asia Pacific. Further, robust radio system sales in Europe led to a 9% increase in C4I and Cyber revenue. Similarly, Land revenue increased by 7% owing to strong artillery and weapon station sales in Europe.
At the end of the quarter, Elbit’s order backlog remained healthy at $16.6 billion, with 75% of the backlog made up of orders from outside Israel. In addition, Elbit secured a contract worth $500 million from the U.S. Navy for the procurement of Squad Binocular Night Vision Goggle systems, associated parts, and logistics support.
Further, the company has announced a dividend of $0.50 per share. The ESLT dividend is payable on January 8, 2024, to investors of record on December 26, 2023.
What Is Elbit’s Price Target?
Though analyst coverage on Elbit is scant at present, the stock has soared by nearly 14% over the past month. The company is witnessing higher demand for its solutions in the aftermath of the attack on Israel last month. Consequently, Elbit has ramped up production and this demand could lead to substantial orders for the company.
These recent developments have pushed the company’s share price close to the $215 resistance level and a break above could lead to a major rally in the stock.
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