Results: Elbit Systems Ltd. Beat Earnings Expectations And Analysts Now Have New Forecasts

It's been a good week for Elbit Systems Ltd. (TLV:ESLT) shareholders, because the company has just released its latest third-quarter results, and the shares gained 2.7% to ₪1,590. Revenues US$1.9b disappointed slightly, at3.3% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of US$2.80 coming in 16% above what was anticipated. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for Elbit Systems from four analysts is for revenues of US$8.80b in 2026. If met, it would imply a solid 14% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 44% to US$14.15. Before this earnings report, the analysts had been forecasting revenues of US$8.84b and earnings per share (EPS) of US$13.93 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for Elbit Systems

The consensus price target rose 8.4% to ₪1,800despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Elbit Systems' earnings by assigning a price premium.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 9.6% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 19% per year. So it's pretty clear that Elbit Systems is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Elbit Systems' revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Elbit Systems going out to 2027, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.