Business in Brief: Elbit Systems Reports Higher Profit, Revenue for Q2

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An Elbit drone.Credit: Elbit Systems

Elbit Systems reports higher profit, revenue for the second quarter

The defense electronics firm Elbit Systems reported higher net profits and revenues for the second quarter, particularly from sales revenue from Europe and Israel. The company, which is dual-listed on the Nasdaq and Tel Aviv exchanges, also reported a growing order backlog. Elbit, Israel’s largest publicly traded defense firm, said yesterday it earned $1.47 per diluted share excluding one-time items in the second quarter, up from $1.25 year earlier. The maker of drones, pilot helmet displays and cybersecurity systems said revenue grew to $804.5 million from $749.6 million. President and CEO Bezhalel Machlis said Elbit Systems’ diversified portfolio has enabled the company to grow in the defense and homeland security markets. “Based on our backlog of orders and market position, we have the potential to continue this trend for the foreseeable future,” he stated. Elbit Systems’ order backlog rose to $6.8 billion from $6.3 billion. The company declared a dividend of 40 cents per share, unchanged from the first quarter. Elbit Systems’ stock closed down 0.26% at 386.00 shekels ($102.25) in trading on the Tel Aviv Stock Exchange yesterday. (Reuters)

Allot shares jump on news of purchase of stake by George Soros’ investment fund

Business magnate George Soros’ investment fund Soros Fund Management has taken a 6.6% stake in the Hod Hasharon tech firm Allot Communications, according to a filing by the fund with the U.S. Security and Exchange Commission. Shares of Allot, which is traded on the Tel Aviv Stock Exchange and on the Nasdaq, closed up 5% in Tel Aviv yesterday, at 19.51 shekels ($5.17). The company, which is a provider of Internet Protocol technology, has fallen on tough times and has been seeking a new direction. Its share price declined 50% over the past two years. What apparently caught Soros’ eye, however, was the company’s $117 million in cash reserves. Revenue rose 6% in the second quarter year-on-year, to $23 million, lower than forecast. Growth for 2016 is expected to be stagnant, for the second year running, although the company expects profitability to improve. (Omri Zerachovitz)

Delta Galil quarterly earnings disappoint at $7.8 million, down 16% from a year ago

Clothing manufacturer and retailer Delta Galil Industries’ earnings report, released yesterday, delivered a jolt to investors who saw the company’s share price surge by over 500% over the past five years. Although Delta shares closed up 0.44% to 113.50 shekels ($30.07) in Tel Aviv yesterday, its second-quarter results fell short of forecasts. The company, which is confronting a 10% fall in sales in the U.S. market, reported a net profit attributable to shareholders of $7.8 million, 16% short of the quarter last year. Sales elsewhere, including Europe and Israel, rose, but at $249.5 million, overall quarterly revenues fell 2% short of last year and operating profits fell 7% to $13.5 million. The company plans to distribute $3.5 million in dividends. (Eran Azran)

TASE shares inch downward, but Allot and Willy Food shares gain

Shares on the Tel Aviv Stock Exchange closed generally lower yesterday. The benchmark TA-25 index was off by 0.33% to 1,467.58 points, while the broader TA-100 index was down 0.37%, at 1,287.05 points. Trading volume was 1.03 billion shekels ($273 million). Bucking the negative trend was the Banks-5 index, which climbed 0.41% to 1,377.14 points. The Tel Bond 20, 40 and 60 indexes rose by between 0.12% and 0.16%. Among stocks of note were Allot Communications, which closed up 5% at 19.51 shekels on turnover of 8 million shekels, (see further coverage above); and Willi-Food Investments, the share price of which jumped 6.13% to 14.37 shekels. (Uri Tomer)