Elbit Systems Reports Q3 2024 Financial Results
Elbit Systems Ltd., a global high technology defense company, today announced its financial results for the third quarter ending September 30, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change | Wall Street Estimates (Q3 2024) |
|---|---|---|---|---|
| Total Revenue | $1.7 billion | $1.5 billion | +14.4% | $1.61 billion |
| Non-GAAP Net Income | $99 million | $76.5 million | +29.4% | - |
| GAAP Net Income | $79 million | $60.7 million | +30.1% | - |
| Non-GAAP EPS | $2.21 | $1.71 | +29.2% | $1.86 |
| GAAP EPS | $1.77 | $1.36 | +30.1% | - |
Elbit Systems reported a strong financial performance in Q3 2024, surpassing Wall Street revenue and earnings per share (EPS) expectations. Revenue rose by 14.4% year-over-year, highlighting robust demand and execution, while non-GAAP EPS of $2.21 exceeded consensus estimates of $1.86.
Revenue Performance by Segment
| Segment | Q3 2024 Revenue Increase | Commentary |
|---|---|---|
| Aerospace | +7% | Driven by increased UAS sales in Israel. |
| C4I and Cyber | +13% | Boosted by radio systems and command sales. |
| ISTAR and EW | +13% | Driven by Electronic Warfare systems. |
| Land | +24% | Due to increased ammunition and munition sales. |
| Elbit Systems of America | +17% | Growth in night-vision systems and medical sales. |
The company recorded growth across all major segments, led by a 24% increase in Land revenues, primarily influenced by ammunitions sales in Israel. Sustained demand in the Aerospace and C4I and Cyber segments also contributed significantly.
Key Developments and Operational Highlights
- Order backlog reached a record high of $22.1 billion, with 66% attributable to orders outside Israel.
- Awarded a $200 million contract to supply laser systems for the 'Iron Beam' air defense system.
- Secured a $127 million follow-on contract for the Iron Fist Active Protection Systems for U.S. Army's Bradley vehicles.
Management Commentary
Bezhalel (Butzi) Machlis, President and CEO, stated that Elbit Systems delivered substantial growth across key performance metrics, exceeding internal goals. The robust order backlog of over $22 billion underscores the company's stability and growth prospects, driven by high demand for its advanced defense solutions.
Dividend Announcement
The Board declared a dividend of $0.50 per share, payable on January 6, 2025, with a record date of December 23, 2024.
Forward Guidance and Stock Price Movement
While the company did not provide explicit forward guidance, the current geopolitical environment's impact on operations remains a critical focus. The stock experienced a slight decline of 0.73% following the earnings announcement, reflecting market reactions post-release.
Elbit Systems continues its focus on leveraging its global presence and technological advancements to sustain growth amid evolving defense requirements.
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