Zacks Investment Research upgraded
Elbit Systems Ltd.
) to a Zacks Rank #1 (Strong Buy) on Aug 27, 2013.
Why the Upgrade?
Elbit Systems reported an impressive financial result for the
second quarter of 2013 on Aug 13, 2013. Non-GAAP EPS came in at
$1.19, up compared with $1.14 reported in the year-ago quarter
due to healthy revenue performance and strong margins in the
Revenue grew 3.9% year over year on the back of higher revenue
generation at Elbit Systems' Airborne Systems and Electro-optic
systems businesses. Revenue generated in Israel, Europe and Latin
America grew 30.0%, 18.4% and 5.0%, respectively.
Elbit Systems reported 0.5% sequential increase in backlog of
orders in the second quarter. Of the total backlog, 67% are from
Talking of margins, gross margin increased 90 basis points (bps)
year over year to 28.9%. Higher gross margins and lower operating
expenses led to 330 basis points increase in operating margin.
In the last 30 days, the Zacks Consensus Estimate for Elbit
Systems remained stable at $4.31 for 2013 while it increased by
4.8% to $5.05 for 2014. Also, the company has a positive earnings
surprise average of 35.8%. Considering these along with the
impressive second quarter result and strong backlog position,
expectation is high for another quarter of solid performance.
Other Stocks to Consider:
Elbit Systems is a $1.8 billion company engaged primarily in the
production, development and integration of defense systems and
Other stocks to watch out for in the industry are
Alliant Techsystems Inc.
) with a Zacks Rank #1 (Strong Buy) while
), each come with a Zacks Rank #2 (Buy).
ALLIANT TECHSYS (ATK): Free Stock Analysis
CURTISS WRIGHT (CW): Free Stock Analysis
DUCOMMUN INC DE (DCO): Free Stock Analysis
ELBIT SYSTEMS (ESLT): Free Stock Analysis
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