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Elbit Systems Limited (NASDAQ:ESLT) stock has reached a new 52-week high, touching $235 as the defense electronics company continues to experience significant growth. This milestone reflects a substantial 17.62% increase in the stock's value over the past year, underscoring the company's strong performance and investor confidence. The ascent to this price level is indicative of Elbit Systems' expanding market presence and its ability to secure and fulfill major contracts in the defense sector, which has translated into robust financial results and a bullish outlook among investors.
In other recent news, Elbit Systems, a NASDAQ-listed defense electronics firm, has reported a significant 12% year-over-year increase in revenues for the second quarter of 2024. This growth is largely attributed to the heightened demand following the Swords of Iron War outbreak. The company's backlog has now surpassed the $21 billion mark, with international markets contributing a substantial 69% to this figure. The non-GAAP operating income was reported at $130.5 million, representing 8% of revenues, with a non-GAAP gross margin of 24.4%.
In parallel, Israel's defense ministry has announced a major advancement in its aerial defense capabilities. A contract worth $536 million has been signed to enhance the production of the Iron Beam, a novel laser-based missile defense system. The contract was awarded to Rafael Advanced Defense Systems and Elbit Systems. The Iron Beam, expected to be operational within the next year, is designed to intercept and neutralize various aerial threats.
These recent developments indicate Elbit Systems' continued growth and profitability in the defense sector, as well as Israel's strategic developments in military defense technology. Analyst Omri Efroni from Oppenheimer has highlighted Elbit Systems' strong presence in the loitering munitions market with the SkyStriker system and its ability to meet the growing demand for UAV solutions.
InvestingPro Insights
Elbit Systems' recent stock performance aligns with several key metrics and insights from InvestingPro. The company's market capitalization stands at $10.23 billion, reflecting its significant presence in the defense electronics sector. InvestingPro data shows that Elbit Systems has achieved a strong return over the last month and three months, with impressive price total returns of 13.45% and 28.63% respectively. This recent momentum has pushed the stock to trade near its 52-week high, currently at 98.83% of that peak.
InvestingPro Tips highlight that Elbit Systems has maintained dividend payments for 28 consecutive years, demonstrating a commitment to shareholder returns. This is particularly noteworthy given the company's current dividend yield of 0.88%. Additionally, analysts predict that the company will be profitable this year, which is consistent with the article's mention of robust financial results.
For investors seeking a deeper understanding of Elbit Systems' potential, InvestingPro offers 12 additional tips, providing a comprehensive analysis of the company's financial health and market position. These insights can be valuable for those looking to make informed investment decisions in the defense sector.
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