Elbit Systems
The 10-second takeaway
For the quarter ended March 31 (Q1), Elbit Systems beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins shrank, and net margins grew.
Revenue details
Elbit Systems chalked up revenue of $690.8 million. The one analyst polled by S&P Capital IQ hoped for sales of $664.3 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $620.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.67. The one earnings estimate compiled by S&P Capital IQ predicted $1.21 per share. GAAP EPS of $0.77 for Q1 were 18% higher than the prior-year quarter's $0.65 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 28.3%, 160 basis points worse than the prior-year quarter. Operating margin was 6.0%, 60 basis points worse than the prior-year quarter. Net margin was 4.8%, 30 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $714.9 million. On the bottom line, the average EPS estimate is $1.23.
Next year's average estimate for revenue is $2.92 billion. The average EPS estimate is $4.96.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 241 members out of 242 rating the stock outperform, and one member rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Elbit Systems a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Elbit Systems is hold, with an average price target of $54.
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