Elbit Systems Shares Are Down Today: What's Going On?
Portfolio Pulse from Lekha Gupta
Elbit Systems Ltd. (NASDAQ:ESLT) shares fell after announcing expected non-cash expenses of $52 million for Q4 2023, due to the write-off of inventory and contract assets from closing an underperforming subsidiary and discontinuing a project. The company plans to release its Q4 and full-year 2023 financial results on March 26, 2024. Despite this, Elbit secured a $300 million contract last month for military systems for European armored vehicles. ESLT shares dropped 1.63% in premarket trading.
March 05, 2024 | 1:45 pm
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Elbit Systems Ltd. anticipates $52 million in non-cash expenses for Q4 2023, affecting its stock with a 1.63% premarket drop. The expenses stem from closing a subsidiary and a project discontinuation. Despite this, a recent $300 million contract win may offset some negative sentiment.
The announcement of significant non-cash expenses due to operational adjustments negatively impacts investor sentiment, leading to a premarket stock price drop. However, the recent contract win presents a positive aspect that might mitigate some of the negative impact in the short term.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100