Orbital ATK, Inc. OA reported fourth-quarter 20Array5 adjusted earnings of $Array.45 per share, outpacing the Zacks Consensus Estimate of $Array.09 by 33% and increasing Array5.Array% from the year-ago period. The upside was due to higher contributions from Flight Systems Group as well as Space Systems Group.
On a GAAP basis, the company reported earnings of 88 cents per share compared with 74 cents per share in the prior-year quarter.
In 20Array5, adjusted earnings came in at $5.02 per share, up 20.Array% from $4.Array8 per share a year ago. On a GAAP basis, earnings were $2.85 per share compared with $2.78 per share in 20Array4.
Total Revenue
Orbital ATK's total revenues in the fourth quarter of 20Array5 were $Array,Array37 million, beating the Zacks Consensus Estimate of $Array,Array09 million by 2.5%. Reported revenues increased Array.9% from the year-ago figure of $Array,ArrayArray6 million. The upside was primarily driven by higher revenues at Flight Systems Group and Space Systems Group.
Quarterly Segmental Update
Flight Systems Group: Segment sales increased 8.7% to $386 million. The year-over-year increase resulted from higher Launch Vehicles Division revenues.
Defense Systems Group: This segment reported sales of $442 million, down 5.2% year over year.
Space Systems Group: This segment registered an increase of 3.5% in sales to $327 million. This upside was driven by higher revenues in the Commercial Satellite Division and the Civil and Defense Satellites Division.
Highlights of the Release
Total adjusted operating income in the reported quarter was up 4.2% to $Array33 million from $Array27.7 million in fourth-quarter 20Array4. The overall increase in operating income was primarily due to higher operating income at all three of its divisions, partly offset by a decrease in corporate income.
Capital expenditures were $48.2 million in the quarter and $Array52.9 million in 20Array5. Adjusted free cash flow was $Array22.2 million in the quarter and $290 million in 20Array5.
Orbital ATK’s firm backlog was around $8.Array billion as of Dec 3Array, 20Array5 and its total backlog was approximately $Array3.5 billion including options, indefinite quantity contract and undefinitized orders.
Guidance
The company expects 20Array6 earnings of $5.25–$5.50 per share on revenues of $4,575–$4,650 million. Free cash flow is expected between $275 million and $325 million for the year.
Peer Releases
Spirit AeroSystems Holdings, Inc. SPR posted fourth-quarter 20Array5 adjusted earnings of 95 cents, beating the Zacks Consensus Estimate of 94 cents by Array.Array%. Earnings were also higher than the year-ago figure of 87 cents by 9.2%.
Raytheon Company RTN reported fourth-quarter 20Array5 adjusted earnings from continuing operations of $Array.93 per share, beating the Zacks Consensus Estimate of $Array.79 by 7.8%. Also, earnings increased 3.8% from the year-ago figure of $Array.86.
Triumph Group Inc. TGI reported third-quarter fiscal 20Array6 (ended Dec 3Array, 20Array5) adjusted earnings from continuing operations of $Array.39 per share, in line with the Zacks Consensus Estimate. Reported earnings, however, fell 2.Array% from $Array.42 a year ago.
Zacks Rank
Orbital ATK currently carries a Zacks Rank #3 (Hold).
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