Elbit Systems Ltd. ESLT shares are trading lower today following the disclosure of an expected non-cash expense of approximately $52 million in the fourth quarter of 2023.
The incurred expenses stem from the closure of an underperforming subsidiary with limited synergies and contract assets tied to a discontinued project managed under the subsidiary.
According to Elbit Systems, $34 million of the expenses are linked to an uncollectible balance of contract assets associated with the discontinued project.
Furthermore, the company has earmarked roughly $18 million of the expenses for restructuring and ceasing activities related to the subsidiary.
Elbit Systems is slated to release its fourth-quarter and full-year 2023 financial results on Tuesday, March 26, 2024.
In a positive development, the company recently clinched a substantial contract valued at around $300 million. The agreement entails providing weapon, reconnaissance, driving, and situational awareness systems for approximately 230 armored vehicles to a European client.
