Message Font: Serif | Sans-Serif
No. of Recommendations: 3
Meant to post this a few days ago but got bogged down in the SA issue:

Nothing terribly extraordinary one way or another really. Revenue was up about 15% but earnings fell based on currency hedging and higher debt expenses. Such are the ways of companies that deal in other currencies. Backlog is up a bit and on the call management mentioned that this is the sixth consecutive quarter with an increase in backlog and "Approximately 62% of the backlog is scheduled to be performed during the rest of this year and 2012."

Management is optimistic about the coming year and mentioned the geographical diversity as a main strength. Particular areas include Asia-Pacific and Latin America as two fast growers. So while there may be some regions bringing in spending cuts, it's not a global movement and they also see additional opportunities with potential acquisitions even here in the U.S. And as defense continues the move toward more sophisticated products, Elbit stands a chance to shine as a leader in the field.

They actually beat estimates on the revenue side of things, so that is worth noting I think. This is one that will be in this portfolio indefinitely, so while it has obviously dipped from when I bought, I still think that's a bit overdone and I believe the stock will see plenty of brighter days ahead.

Foolish best,

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.