Elbit Systems Ltd. (ESLT) shares tumbled 7.49% in pre-market trading on Tuesday, despite the defense contractor reporting second-quarter results that exceeded analyst expectations.

The company posted adjusted earnings of $4.14 per share, significantly above the consensus estimate of $3.70, and revenue rose 15.9% to $2.29 billion, also topping forecasts. This marks the fourth consecutive quarter that Elbit Systems has beaten earnings estimates, underscoring its strong operational performance.

However, the sharp decline is attributed to profit-taking by investors, as the stock had already surged 46.4% year-to-date prior to the report. The sell-off suggests that the robust earnings were already priced in, and the market used the positive news as an opportunity to lock in gains.