In addition, we have clarified the methodology of our backlog and revenue forecast. This updated 16 slide investment pitch on Elbit Systems is meant to give investors a clear idea on what to expect over the coming quarters and whether it makes sense to buy or sell the stock now. Our Elbit Systems powerpoint pitch can be found below for Equity Research subscribers only. Our financial model is available on request to Equity Research subscribers.
Aerospace
7 posts
We have updated our view of Elbit Systems, accounting for the impact of IMI Systems and new announced orders on operating leverage and non-GAAP EPS. We hit on the key points that we believe will move the stock in 2018 based on how the stock has historically traded. Attached is an updated 13-page powerpoint presentation on the key issues that will affect Elbit’s adjusted EPS and valuation. All subscribers can access our full financial model. While our target is $130, but we see upside up to $134 based on 20x our 2019 non-GAAP EPS of $6.72. We believe upside is […]
WIth contributions from Xenel Nazar. Elbit reported Q4 results on Tuesday, March 20th. The financial results were in-line with our expectations. Financial Model Impacts – Gross margin in 2018 should be similar to the last 4 to 6 quarters. _”So without giving you specific guidance, I think if you look back on what has happened in the last 4 to 6 quarters on average, that may be something that could be representative of the future.”_ – General & Administrative expense in Q4 could again occur, although likely by lesser amounts. _”I note that during 2017, and particularly during the fourth quarter, […]
We have updated our forecast to more accurately account for expected operating costs in 2018. Hiring at Elbit Systems has steadily increased by 2% to 3% a year over the last few years, much of which has been seen in higher sales and marketing costs. We have also added our marketing presentation of Elbit for our subscribers. However our prior estimates we believe likely punished Elbit too severely. We are increasing our non-GAAP EBIT margins from 9.7% to 10.1%. Source: Perspectec Source: Perspectec Source: Perspectec We have also attached an easy to understand powerpoint explaining our view. […]
Elbit Systems Ltd. (ESLT-NASDAQ) reported their third quarter 2017 results on Tuesday, November 14, 2017. In this piece we discuss how the timing of deals signed by Elbit impacted the quarter. We also provide a forecast for the upcoming quarter based partially on signed deal timing. Q3/17 Results Record gross margins helped make up for lower than expected revenue. Source: Perspectec Revenue was off a little – Elbit saw revenue come in about 2% below our estimates. Y/Y growth of about 3% was slightly below that of other defense contractors such as Lockheed Martin (5%) and Raytheon (4.5%). Contract falls off […]
Elbit Systems Ltd. (NASDAQ: ESLT) is set to announce their third quarter 2017 results on Tuesday, November 14, 2017. Q3/17 marked the 3rd consecutive quarter of increasing orders for Elbit, reaching record levels according to our estimates. The stock is up 4% since reporting a $300 million Command and Control Asia-Pacific order. This is off the back of a $240 million order from an African country for land and anti-ground solutions announced the day before. Years of overspending (as a percentage of revenue) in R&D is finally paying off for the company with increased spending on border security and land […]
The following is our initial stock call the overall business and share price of Elbit Systems (ESLT-NASDAQ). The purpose of this report, and the underlying research provided, is to better understand the future direction of ESLT relative to its peers and the NASDAQ composite. The main criteria that will determine the future share price, earnings per share and dividend per share is anticipating the next few quarters’ dollar revenue recognized, based off the order backlog numbers. Any unexpected changes in revenue recognized in a given quarter will impact the overall buy/sell valuation. This information is provided with the understanding that […]