Elbit Systems stock surged above a key moving average and back toward a buy point after its Q2 beat Wednesday.
The Israel-based defense firm also announced it received a $1.64 billion contract.
Elbit Systems reported about a 53% increase in earnings to $2.69 per share while revenue jumped 21% to $1.97 billion.
FactSet analysts expected earnings of $2.41 per share on $1.889 billion in revenue.
Aerospace revenue increased almost 12% to $536.8 million. Command, Control, Communications, Computers and Intelligence (C4I) and cyber revenue jumped about 21%. The company's Intelligence, Surveillance, Target Acquisition and Reconnaissance (ISTAR) and Electronic Warfare (EW) segment rose more than 15%.
Land systems revenue surged about 45%. Elbit Systems of America revenue for its U.S. business increased a little more than 4%.
Elbit Systems noted that it has seen a "material increase in the demand for its products and solutions" from the Israel Defense Ministry as conflicts in the Middle East escalate. The company said that demand from Israeli Ministry of Defense may continue to generate additional orders. Elbit noted that operations at a majority of its facilities in Israel have continued uninterrupted.
Separately, Elbit Systems on Wednesday announced that it was awarded a $1.635 billion contract to deliver a range of defense solutions to an unnamed European country. The first batch of deliverables for the five-year contract will include long-range precision strike artillery rocket systems, as well as various unmanned reconnaissance and loitering aerial combat systems, and personally-operated drones. The second batch will comprise ISTAR capabilities and electronic warfare systems. That includes advanced electro-optical and night-vision systems, combat vehicle upgrades, and protective equipment.
Elbit will also deliver upgraded software and hardware communication equipment to improve the country's Network Combat Solution.
Elbit Systems Stock
ESLT stock jumped 5.6% Wednesday to rebound back above its 50-day moving average and 21-day lines.
Elbit Systems fell below a 476.04 buy point for a flat base after clearing the entry on Aug. 4. The loss triggered the automatic sell rule.
Elbit Systems stock has rallied almost 79% this year.
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