How the Wheels Came Off Elbit Systems' Bus
Elbit Systems (NAS: ESLT) reported earnings on May 15. Here are the numbers you need to know.
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.
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 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.
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.
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.
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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At the time this article 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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