The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Elbit Systems missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share grew.
Gross margins contracted, operating margins dropped, net margins expanded.
Elbit Systems booked revenue of $677.5 million. The three analysts polled by S&P Capital IQ expected a top line of $691.7 million on the same basis. GAAP reported sales were 2.1% higher than the prior-year quarter's $663.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.95. The one earnings estimate compiled by S&P Capital IQ forecast $0.96 per share. GAAP EPS of $0.95 for Q3 were 12% higher than the prior-year quarter's $0.85 per share. (The prior-year quarter included -$0.35 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 28.3%, 250 basis points worse than the prior-year quarter. Operating margin was 7.2%, 130 basis points worse than the prior-year quarter. Net margin was 5.8%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $804.1 million. On the bottom line, the average EPS estimate is $1.35.
Next year's average estimate for revenue is $2.86 billion. The average EPS estimate is $4.41.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 246 members out of 247 rating the stock outperform, and one members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give Elbit Systems a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Elbit Systems is hold, with an average price target of $44.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Elbit Systems Ltd. (ADR). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.