Elbit Systems Inc.

Elbit Systems Inc (ESLT - Snapshot Report) continued its solid earnings history, beating estimates last month. Analysts are raising estimates keeping shares at a good value.

Company Description

Elbit Systems makes electronic defense products and systems. The company upgrades existing military platforms and creates new platforms in the areas of aerospace, command and control, communications, electro-optics(night-vision) and several other areas.

Net Income Surges

On Nov 18 Elbit reported revenues of $733 million, up more than 9%, year-over-year. Net income jumped 64% to $58.3 million on the quarter. The company continues to see growth in sales due to market demand and solid positioning as well as acquisitions.

Earnings per share came in at $1.35, which was up 63% since the same period last year. The Zacks Consensus Estimate was at $1.14 headed into the announcement, making it the second consecutive earnings surprise and the 7th in the past 8 quarters. Earlier this year the company met expectations.

Analysts React

Following the report, upward revisions started coming in. The Zacks Consensus for this year is up to $4.97, from $4.75. This level represents earnings growth of just over 50%.

Next year's average estimate is up 19 cents, to $5.31, good enough for almost 7% more growth.

Valuations

A piece of the defense company is going for just under 13 times forward earnings. Currently, the growth rate is a bit more expensive with the PEG ratio coming in at 1.26 times.

The Chart

Shares of ESLT have come off of their 52-week highs, making a good entry point. The company also boasts quite an impressive earnings history, as you can see below. There are only 3 misses in the past 5 years.

Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service

Read the full analyst report on ESLT