Following the outbreak in the Russia-Ukraine war in February, the share prices of defense companies began to rise. Since the start of the year, the share price of Israeli defense electronics company Elbit Systems Ltd. (Nasdaq: ESLT; TASE:ESLT) has risen strongly. It was up by 50% at its peak last week.
The company today reported its second quarter results but the war, which has caused NATO countries to increase defense expenditure, is not yet reflected in the company's results, although Elbit's order backlog has climbed to a record $14.1 billion, 3% up from the end of the first quarter and 4% higher than the end of the second quarter last year.
Revenue in the second quarter of 2022 was $1.303 billion, up slightly from $1.302 billion in the second quarter of 2021. Non-GAAP net profit was $76.9 million, down from $93.4 million in the second quarter of 2021. GAAP net profit was $82 million in the second quarter of 2022, down 20% from the corresponding quarter of 2021.
Elbit Systems president and CEO Bezhalel Machlis said, "Order backlog growth in the second quarter reflects the continued demand for Elbit Systems' portfolio of leading technological capabilities from customers around the world and supports our future growth prospects.
He added, "We continue to make investments in our portfolio that are well aligned with the priority areas of our customers. I believe the trend in global defense budgets combined with an improved operational initiative should support Elbit Systems' long term success."
The company's share price fell 4.93% to $232.23 yesterday, giving a market cap of $10.297 billion, and is down a further 3.69% in premarket trading.
Published by Globes, Israel business news - en.globes.co.il - on August 16, 2022.
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