Elbit Systems Q3: Double-Digit Revenue Growth, Operational Challenges, Increased Defense Demand & More
Portfolio Pulse from Akanksha Bakshi
Elbit Systems Ltd (NASDAQ:ESLT) reported a 11.3% Y/Y increase in Q3 FY23 revenue to $1.501 billion, surpassing estimates. Aerospace segment led with a 24.3% rise, while Elbit Systems of America saw a 2% decline due to lower munition sales. Gross margin slightly improved, but adjusted EPS of $1.65 missed expectations. The order backlog reached $16.6 billion. Operational cash flow was negative, impacted by inventory increases. Demand surged following attacks from Gaza. A dividend of $0.50 per share was declared. ESLT stock dropped 2.81% to $206.49.
November 28, 2023 | 3:09 pm
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Elbit Systems reported strong revenue growth and a significant increase in order backlog, but missed EPS estimates and experienced a decline in stock price by 2.81%.
Despite the positive revenue growth and increased backlog, the miss on EPS expectations and the negative operational cash flow could concern investors, leading to a short-term negative impact on the stock price. The recent drop in stock price post-earnings release indicates market reaction to these mixed results.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100