Elbit Systems reports higher revenue, flat profit

Bezhalel Machlis  photo: Tamar Matsafi

Elbit CEO Bezhalel Machlis: We are seeing a trend of larger defense spending in many of our target markets.

Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) reported its first quarter 2017 results today. Revenue for the quarter totaled $749.2 million, which compares with $721.2 million in the first quarter of 2016. Non-GAAP gross profit totaled $226.8 million (30.3% of revenue) in the first quarter of 2017, compared with $220.1 million (30.5% of revenue) in the first quarter of 2016. GAAP gross profit in the first quarter of 2017 was $221.2 million (29.5% of revenue), compared with $212.2 million (29.4% of revenue) in the first quarter of 2016.

Non-GAAP net profit attributable to the company's shareholders in the first quarter of 2017 was $51.7 million (6.9% of revenue), which compares with $51.2 million (7.1% of revenue) in the first quarter of 2016. GAAP net profit in the first quarter of 2017 was $45.6 million (6.1% of revenue), which compares with $52.3 million (7.3% of revenue) in the first quarter of 2016. GAAP net profit in the first quarter of 2016 included a gain of $7 million related to the revaluation of an investment and a capital gain of $3.9 million related to the sale of real estate.

Non-GAAP diluted net earnings per share attributable to the company's shareholders were $1.21 for the first quarter of 2017, which compares with $1.20 for the first quarter of 2016. GAAP diluted earnings per share in the first quarter of 2017 were $1.07, which compares with $1.22 for the first quarter of 2016, which included earnings per share of $0.26 related to the gain from revaluation of an investment and sale of real estate.

The company’s backlog of orders at the end of the first quarter of 2017 totaled $7,067 million, which compares with $6,775 million at the end of the first quarter of 2017. Approximately 70% of the current backlog is attributable to orders from outside Israel. Approximately 64% of the current backlog is scheduled to be performed during 2017 and 2018.

Elbit's board of directors declared a dividend of $0.44 per share for the first quarter of 2017.

Elbit Systems president and CEO Bezhalel (Butzi) Machlis said, “We are pleased with the continued growth in our revenue and backlog. In today’s geopolitical environment, we are seeing a trend of larger defense spending in many of our target markets, especially in the electronic defense sphere. In the first quarter our investments in marketing and R&D rose somewhat in order to be able to capitalize on the increasing opportunities. We have been able to stay consistently ahead of the curve in anticipating defense and security trends and customer needs, both in terms of our product portfolio and our geographic spread. I believe this positions us well to continue on our long-term growth path.”

Published by Globes [online], Israel business news - www.globes-online.com - on May 16, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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Bezhalel Machlis  photo: Tamar Matsafi
Bezhalel Machlis photo: Tamar Matsafi
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