Elbit Systems (NASDAQ:ESLT) Shares Gap Up on Earnings Beat

Key Points

• Elbit Systems Ltd. shares opened at $467.76 following a strong earnings report, with earnings per share of $3.23, exceeding expectations by $0.66.
• The company announced a quarterly dividend payment of $0.75 per share, up from the previous $0.60, reflecting a positive financial outlook.
• Multiple research firms have set new price targets for Elbit Systems, with Bank of America initiating a "buy" rating and a target price of $500.00.

Elbit Systems Ltd. (NASDAQ:ESLT - Get Free Report)'s stock price gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $437.18, but opened at $467.76. Elbit Systems shares last traded at $466.26, with a volume of 114,349 shares changing hands.

The aerospace company reported $3.23 earnings per share for the quarter, topping analysts' consensus estimates of $2.57 by $0.66. The company had revenue of $1.97 billion during the quarter, compared to analyst estimates of $1.89 billion. Elbit Systems had a net margin of 5.35% and a return on equity of 14.29%. During the same period in the prior year, the firm earned $2.08 earnings per share.

Elbit Systems Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, October 27th. Investors of record on Tuesday, October 14th will be issued a $0.75 dividend. This is a boost from Elbit Systems's previous quarterly dividend of $0.60. The ex-dividend date is Tuesday, October 14th. This represents a $3.00 annualized dividend and a yield of 0.6%. Elbit Systems's dividend payout ratio is currently 22.70%.

Analysts Set New Price Targets

Several equities research analysts have commented on ESLT shares. Wall Street Zen lowered Elbit Systems from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 9th. Bank of America began coverage on Elbit Systems in a research note on Thursday, July 24th. They issued a "buy" rating and a $500.00 price objective for the company.

Hedge Funds Weigh In On Elbit Systems

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Assetmark Inc. boosted its stake in shares of Elbit Systems by 11.2% in the 2nd quarter. Assetmark Inc. now owns 209 shares of the aerospace company's stock valued at $94,000 after buying an additional 21 shares during the period. National Bank of Canada FI increased its position in Elbit Systems by 8.6% during the first quarter. National Bank of Canada FI now owns 393 shares of the aerospace company's stock worth $151,000 after buying an additional 31 shares during the period. SBI Securities Co. Ltd. increased its position in Elbit Systems by 20.9% during the second quarter. SBI Securities Co. Ltd. now owns 185 shares of the aerospace company's stock worth $83,000 after buying an additional 32 shares during the period. Townsquare Capital LLC increased its holdings in shares of Elbit Systems by 5.3% in the first quarter. Townsquare Capital LLC now owns 878 shares of the aerospace company's stock valued at $337,000 after purchasing an additional 44 shares during the period. Finally, Public Sector Pension Investment Board increased its holdings in shares of Elbit Systems by 0.3% in the second quarter. Public Sector Pension Investment Board now owns 14,522 shares of the aerospace company's stock valued at $6,460,000 after purchasing an additional 48 shares during the period. 17.88% of the stock is currently owned by hedge funds and other institutional investors.

Elbit Systems Stock Performance

The firm has a market cap of $21.04 billion, a price-to-earnings ratio of 53.73, a price-to-earnings-growth ratio of 1.81 and a beta of 0.33. The company has a quick ratio of 0.77, a current ratio of 1.29 and a debt-to-equity ratio of 0.06. The stock has a fifty day moving average price of $446.50 and a 200-day moving average price of $396.64.

About Elbit Systems

Elbit Systems Ltd. develops and supplies a portfolio of airborne, land, and naval systems and products for the defense, homeland security, and commercial aviation applications primarily in Israel. The company operates through Aerospace, C4I and Cyber, ISTAR and EW, Land, and Elbit Systems of America segments.