Elbit Systems Goes Red

Seth Jayson, The Motley Fool
Updated

Elbit Systems (NAS: ESLT) reported earnings on March 14. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Elbit Systems beat expectations on revenue and whiffed on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped to a loss.

Margins dropped across the board.

Revenue details
Elbit Systems booked revenue of $841.9 million. The two analysts polled by S&P Capital IQ wanted to see revenue of $753.7 million on the same basis. GAAP reported sales were 5.4% higher than the prior-year quarter's $798.7 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $1.08. The one earnings estimate compiled by S&P Capital IQ predicted $1.34 per share on the same basis. GAAP EPS were -$0.31 for Q4 against $1.02 per share for the prior-year quarter.

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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 16.8%, 1,380 basis points worse than the prior-year quarter. Operating margin was -4.1%, 1,220 basis points worse than the prior-year quarter. Net margin was -1.5%, 700 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $679.5 million. On the bottom line, the average EPS estimate is $1.21.

Next year's average estimate for revenue is $2.91 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 56 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all 56 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 $58.00.

At the time thisarticle was published 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 ofMotley 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. 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.

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