Core Insights - Elbit Systems reported strong financial results for the fourth quarter and full year of 2024, with a backlog of orders totaling $22.6 billion and revenues of $6.8 billion, reflecting a 14% increase from 2023 [1][15][31]. Financial Performance - Fourth quarter revenues reached $1,930.2 million, up from $1,625.8 million in the same quarter of 2023, marking a significant year-over-year growth [4][15]. - Non-GAAP net income for the fourth quarter was $119.3 million (6.2% of revenues), compared to $69.7 million (4.3% of revenues) in the fourth quarter of 2023 [13][31]. - GAAP net income for the fourth quarter was $90.0 million (4.7% of revenues), up from $30.0 million (1.8% of revenues) in the fourth quarter of 2023 [13][31]. - For the full year 2024, non-GAAP net income attributable to shareholders was $391.5 million (5.7% of revenues), compared to $298.8 million (5.0% of revenues) in 2023 [31]. - GAAP net income for the full year was $321.1 million (4.7% of revenues), an increase from $215.1 million (3.6% of revenues) in 2023 [31]. Revenue Segmentation - Aerospace revenues increased by 27% in Q4 2024, driven by higher UAS revenues in Israel and Europe, and increased Precision Guided Munition (PGM) revenues [5]. - C4I and Cyber revenues rose by 7%, primarily due to sales of radio systems and command and control systems [5]. - Land revenues surged by 29%, mainly due to increased sales of ammunition and munitions in Israel [5][16]. - Elbit Systems of America revenues increased by 6%, attributed to higher sales of night-vision systems and medical instrumentation [5]. Operational Highlights - The company generated $320 million in free cash flow during the fourth quarter [3]. - Research and development expenses for Q4 2024 were $131.2 million (6.8% of revenues), compared to $117.4 million (7.2% of revenues) in Q4 2023 [7][19]. - Marketing and selling expenses for Q4 2024 were $107.2 million (5.6% of revenues), up from $91.3 million (5.6% of revenues) in Q4 2023 [7][20]. - General and administrative expenses decreased to $85.4 million (4.4% of revenues) in Q4 2024, down from $105.9 million (6.5% of revenues) in Q4 2023 [8][20]. Backlog and Future Outlook - The order backlog as of December 31, 2024, was $22.6 billion, an increase from $17.8 billion at the end of 2023, with approximately 65% of the backlog from international orders [33]. - About 57% of the current backlog is scheduled for execution in 2025 and 2026 [33]. - The company has experienced increased demand for its products from the Israel Ministry of Defense due to the ongoing conflict, with contracts awarded totaling over $5 billion during 2024 [34][35].

Core Insights - Zacks Premium provides various tools to enhance stock market investment confidence and knowledge [1][2] - The Zacks Style Scores are designed to complement the Zacks Rank, helping investors identify stocks likely to outperform the market in the short term [3][8] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating better performance potential [4] - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score [4][5][6][7] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [4] Growth Score - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Score assesses stocks based on price trends and earnings outlook changes, helping investors capitalize on upward or downward price movements [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investing strategies [7] Zacks Rank and Performance - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investment decisions, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988 [8][9] Stock Highlight: Leidos Holdings, Inc. (LDOS) - Leidos is a global leader in science and technology, serving defense, intelligence, civil, and health markets, with core capabilities in cybersecurity, data analytics, and systems engineering [13] - Leidos holds a 2 (Buy) Zacks Rank and a VGM Score of A, with a Value Style Score of A due to a forward P/E ratio of 12.37 [14] - Recent upward revisions in earnings estimates for fiscal 2025 have increased the Zacks Consensus Estimate by $0.12 to $10.44 per share, with an average earnings surprise of 28.3% [14][15]