Elbit's Order Blitz Buoys Q4 Revenue, But Profit Margins Erode
Portfolio Pulse from Lekha Gupta
Elbit Systems Ltd. (NASDAQ:ESLT) reported a Q4 FY23 revenue of $1.625 billion, surpassing the consensus of $1.525 billion, with significant order backlog and segment growth, despite a decline in profit margins and operating cash flows. Adjusted EPS was $1.56, above the consensus of $1.38. The company announced a dividend of $0.50 per share and expects non-cash expenses of $52 million due to the closure of an underperforming subsidiary.
March 26, 2024 | 9:47 am
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Elbit Systems reported higher than expected Q4 FY23 revenue and a significant order backlog, but faced declining profit margins and operating cash flows. A dividend was announced, and shares rose 1.13% in premarket trading.
The positive revenue and EPS beat, along with a substantial order backlog, indicate strong operational performance and future revenue potential, outweighing the negative impact of declining profit margins and operating cash flows. The announcement of a dividend and the premarket share price increase further support a positive short-term outlook for ESLT.
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