Shares of Israeli defense major Elbit Systems (NASDAQ:ESLT) are in focus today after the company delivered better-than-expected results for the first quarter.
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Revenue rose by 11.5% year-over-year to $1.55 billion, exceeding estimates by $60 million. Similarly, its EPS of $1.81 comfortably outpaced consensus by a margin of $0.62.
Another Robust Performance from Elbit
During the quarter, Elbit’s Aerospace revenue ticked modestly higher. Its ISTAR and EW revenue, in contrast, shot up by 17% on the back of gains from Electronic Warfare and Electro-Optic system sales domestically. Additionally, the company’s C4I and Cyber revenue jumped by 12%, primarily driven by domestic radio systems sales. Moreover, its Land revenue increased by 26% on the back of higher ammunition and munition sales.
Furthermore, Elbit clocked double-digit sales gains across North America, Europe, Asia Pacific, as well as in its domestic market. At the same time, Elbit is sitting on a mega order backlog of over $20 billion. In comparison, its order backlog stood at around $17.8 billion at the end of December 2023.
Importantly, Elbit is experiencing elevated demand for its products amid the current Middle East tensions. This could lead to additional orders for the company over the coming periods. Separately, Elbit has announced a dividend of $0.50 per share. The ESLT dividend is payable on July 1 to investors of record on June 18.
Is Elbit Stock Bullish, Bearish, or Neutral?
Elbit’s share price has rallied by nearly 57% over the past three years. However, the TipRanks Technical Analysis tool is flashing a Neutral signal on the stock on a weekly timeframe. This means investors may want to adopt a wait-and-watch approach on ESLT stock for now.
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