In a recent analyst conference call, experts Kahyaoglu and Lemarie focused on several key developments surrounding Elbit Systems (ESLT, Financial) and other industry players. The discussion highlighted ESLT's earnings performance, which remains a primary focus for investors and analysts alike. As the company navigates the aerospace and defense sector, these insights are vital for gauging its market position and potential growth.
The call also covered other industry-related topics, such as recent deals by corporations like HON and TDG, as well as future projections for HEI's second-quarter results. Additionally, fastener data from HWM and a dividend increase by NOC were on the agenda, reflecting broader market trends and corporate strategies within the sector.
The webcast for this call is scheduled to take place on May 23 at 10 am, providing a platform for detailed analysis and expert opinions on these developments. Investors and stakeholders are encouraged to tune in for comprehensive insights into the industry's current state and future outlook.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Elbit Systems Ltd (ESLT, Financial) is $450.00 with a high estimate of $450.00 and a low estimate of $450.00. The average target implies an upside of 19.41% from the current price of $376.85. More detailed estimate data can be found on the Elbit Systems Ltd (ESLT) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Elbit Systems Ltd's (ESLT, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Elbit Systems Ltd (ESLT, Financial) in one year is $269.02, suggesting a downside of 28.61% from the current price of $376.85. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Elbit Systems Ltd (ESLT) Summary page.
ESLT Key Business Developments
Release Date: May 20, 2025
- Revenue: $1,896 million in Q1 2025, up from $1,554 million in Q1 2024.
- Gross Margin: GAAP gross margin at 24% and non-GAAP gross margin at 24.3% for Q1 2025.
- Operating Income: GAAP operating income of $149.7 million (7.9% of revenues) and non-GAAP operating income of $165.1 million (8.7% of revenues) for Q1 2025.
- Net Income: GAAP diluted EPS of $2.35 and non-GAAP diluted EPS of $2.57 for Q1 2025.
- Free Cash Flow: $161 million in Q1 2025.
- Order Backlog: $23.1 billion as of March 31, 2025, up $2.7 billion from Q1 2024.
- Operating Cash Flow: Net cash provided by operating activities was $184 million in Q1 2025, compared to $6 million used in Q1 2024.
- Segment Revenue Growth: Aerospace revenue up 20%, C4I and Cyber up 12%, ISTAR and EW up 4%, Land up 48%, and Elbit Systems of America up 18% year-over-year in Q1 2025.
- Dividend: Declared dividend of $0.60 per share.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Elbit Systems Ltd (ESLT, Financial) reported strong revenue growth for the fourth consecutive quarter, with first-quarter revenues reaching $1,896 million, a significant increase from $1,554 million in the same quarter of 2024.
- The company achieved a record order backlog of $23.1 billion, up $2.7 billion from the previous year, indicating strong demand for its products.
- Free cash flow was robust at $161 million for the quarter, reflecting improved cash management and operational efficiency.
- Elbit Systems Ltd (ESLT) saw significant growth in its land division, with a 48% increase in revenue, driven by increased ammunition and munition sales in Israel and Europe.
- The company declared a dividend of $0.60 per share, demonstrating confidence in its financial stability and commitment to returning value to shareholders.
Negative Points
- The GAAP gross margin slightly decreased to 24% from 24.1% in the first quarter of 2024, indicating pressure on profitability.
- Financial expenses increased to $39 million from $31.2 million in the previous year, primarily due to hedging transactions and currency exchange rate fluctuations.
- The effective tax rate for the quarter was 13.9%, slightly higher than the 14.6% in the first quarter of 2024, impacting net income.
- There is potential uncertainty regarding future defense spending in Israel due to geopolitical developments, such as a possible ceasefire in Gaza.
- The company faces challenges in maintaining its high growth rate, as it relies on continued strong demand in key markets like Europe and Asia Pacific.
