Elbit Systems Rises After Q4 Revenue Tops Estimates, Retail’s Extremely Bullish

The company's Aerospace segment revenue rose by 27% in the fourth quarter compared to a year earlier.

Elbit Systems (ESLT) stock jumped 10.6% on Tuesday after the defense firm topped estimates for fourth-quarter revenue.

According to Koyfin data, the Israel-based company reported quarterly revenue of $1.93 billion, while analysts expected it to post $1.78 billion in revenue.

The company also reported a net income of $90 million, or $2 per share, for the three months ended Dec. 31, compared with $30 million, or $0.67 per share, in the year-ago quarter.

Elbit said its Aerospace revenue rose by 27% in the fourth quarter, compared to a year earlier, due to increased unmanned aerial system (UAS) revenue in Israel and Europe and increased demand for Precision Guided Munition (PGM).

Its land segment revenue jumped by 29%, primarily due to ammunition and munition sales in Israel.

The reported quarter was the fourth consecutive quarter where the company booked double-digit growth year-over-year amid the war in Gaza.

During 2024, the Company was awarded contracts by the Israel Ministry of Defense totaling over $5 billion.

The company said that as of March 6, most of its relocated production lines had returned to their original locations, and the percentage of employees called up for reserve duty had declined from about 5% on Dec. 31 to about 4%.

Retail sentiment on Stocktwits jumped to ‘extremely bullish’ (86/100) territory from ‘bullish’(61/100) a day ago, while retail chatter was ‘extremely high.’

One retail investor said the company had “crushed earnings” and wondered where it would spend its free cash flow.

Elbit shares have gained nearly 58% year-to-date (YTD).

Israel conducted "extensive strikes" on Hamas targets on Tuesday, its most significant since the ceasefire in January.  

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