Elbit Systems (NASDAQ: ESLT) reported Q4 EPS of $2.38, $0.45 better than the analyst estimate of $1.93. Revenue for the quarter came in at $1.38 billion versus the consensus estimate of $1.33 billion.

Fourth quarter 2020 results:

• Net income attributable to non-controlling interests was $0.1 million in the fourth quarter of 2020, as compared to a loss of $0.3 million in the fourth quarter of 2019.
• Non-GAAP(*) net income attributable to the Company's shareholders in the fourth quarter of 2020 was $105.0 million (7.6% of revenues), as compared to $109.3 million (8.3% of revenues) in the fourth quarter of 2019. GAAP net income attributable to the Company's shareholders in the fourth quarter of 2020 was $67.8 million (4.9% of revenues), as compared to $51.5 million (3.9% of revenues) in the fourth quarter of 2019.
• Non GAAP(*) diluted net earnings per share attributable to the Company's shareholders were $2.38 for the fourth quarter of 2020, as compared to $2.47 for the fourth quarter of 2019. GAAP diluted earnings per share attributable to the Company's shareholders in the fourth quarter of 2020 were $1.53, as compared to $1.16 in the fourth quarter of 2019.
• Revenues in the fourth quarter of 2020 were $1,377.7 million, as compared to $1,321.5 million in the fourth quarter of 2019.
• Non-GAAP(*) gross profit amounted to $363.0 million (26.3% of revenues) in the fourth quarter of 2020, as compared to $345.8 million (26.2% of revenues) in the fourth quarter of 2019. GAAP gross profit in the fourth quarter of 2020 was $357.8 million (26.0% of revenues), as compared to $284.3 million (21.5% of revenues) in the fourth quarter of 2019. The gross profit in the fourth quarter of 2019 included expenses of $55.0, related to the acquisition of a U.S. subsidiary, Elbit Night Vision ("ENV").
• Research and development expenses, net were $109.1 million (7.9% of revenues) in the fourth quarter of 2020, as compared to $97.6 million (7.4% of revenues) in the fourth quarter of 2019.
• Marketing and selling expenses, net were $81.2 million (5.9% of revenues) in the fourth quarter of 2020, as compared to $80.5 million (6.1% of revenues) in the fourth quarter of 2019.
• General and administrative expenses, net were $62.9 million (4.6% of revenues) in the fourth quarter of 2020, as compared to $46.4 million (3.5% of revenues) in the fourth quarter of 2019. The lower level of general and administrative expenses in the fourth quarter of 2019 resulted mainly from income related to settlement of litigation in the U.S.
• Non-GAAP(*) operating income was $113.8 million (8.3% of revenues) in the fourth quarter of 2020, as compared to $125.4 million (9.5% of revenues) in the fourth quarter of 2019. GAAP operating income in the fourth quarter of 2020 was $104.6 million (7.6% of revenues), as compared to $63.6 million (4.8% of revenues) in the fourth quarter of 2019. GAAP operation income in the fourth quarter of 2019 were reduced by $55.0 million due to expenses related to the acquisition of ENV.
• Financial expenses, net were $32.5 million in the fourth quarter of 2020, as compared to $16.4 million in the fourth quarter of 2019. The increase in financial expenses in the fourth quarter of 2020 was mainly a result of the revaluation of lease liabilities due to the strengthening of the New Israeli Shekel versus the U.S. Dollar.
• Other expenses net were $7.3 million in the fourth quarter of 2020, as compared to $1.6 million in the fourth quarter of 2019. Other expenses in the fourth quarter of 2020 were mainly due to the non-service cost components of pension plans.
• Taxes on income were a tax expense of $1.9 million in the fourth quarter of 2020, as compared to a tax benefit of $9.1 million in the fourth quarter of 2019. The tax benefit in the fourth quarter of 2019 was related mainly to adjustments for prior years following tax assessments in some of the Company's subsidiaries in Israel.
• Equity in net earnings of affiliated companies and partnerships was $5.0 million in the fourth quarter of 2020, as compared to a net loss of $3.5 million the fourth quarter of 2019. The loss in the fourth quarter of 2019 was mainly a result of a fair value re-evaluation of holdings in an affiliated company.

Management Comment:

Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, commented:

"2020 saw our employees around the world successfully address the challenges presented by the global Covid-19 pandemic and enabled Elbit Systems to achieve positive results for both the fourth quarter and the year.

Our year-end backlog increased by 10% relative to the end of 2019 demonstrating sustained demand for our systems and services from our customers around the world. I am pleased with our operational performance in a challenging year, particularly the improved cash generation.

Our solid backlog, combined with ongoing worldwide demand for our broad portfolio of technologies and solutions, provides us with confidence in the Company's future prospects".

For earnings history and earnings-related data on Elbit Systems (ESLT) click here.