Aerospace and defense company
Alliant Techsystems Inc.
) announced operating earnings of $2.16 per share for its first
quarter of fiscal 2013 ended July 1, 2012, exceeding the Zacks
Consensus Estimate of $1.40 and the year-ago earnings of $2.13 per
The year-over-year growth in earnings was due to proper
execution of the programs, increase in the ammunition sales volume
and a continuous order flow.
Alliant's total revenue in the first quarter of fiscal 2013 was
$1,082.3 million, up from $1,075.2 million reported in the year-ago
Alliant's revenues during the quarter surpassed the Zacks
Consensus Estimates of $964 million.
The first quarter results were driven by better execution at the
segments, marginally offset by a slackened performance from
As previously announced, the company has started to report it
results under three operating segments from the first quarter of
sales in first quarter of fiscal 2013 were $514 million versus $492
million recorded in the prior-year quarter. The 4.5% year-over-year
growth was due to higher volume and updated sales and profit rates
as the company completed contracts at the Radford Army Ammunition
sales in first quarter of fiscal 2013 were $273 million versus $229
million recorded in the prior-year quarter. The 19.2%
year-over-year rise was due to higher sales from commercial
ammunition and tactical accessories businesses.
First quarter of fiscal 2013 sales from
decreased 16.7% to $295 million from $353.6 million reported in the
prior-year quarter. The decline was attributable to lower sales in
NASA human space flight programs and lower revenue from commercial
Total cash and cash equivalents as of July 1, 2012, were $212.4
million versus $568.8 million as of March 31, 2012.
Long-term debts of the company as of July 1, 2012 were $1.26
billion versus $1.27 billion as of March 31, 2012.
Cash used in operating activities in the first quarter of fiscal
2013 was $296.1 million versus $151.5 million in the first quarter
of fiscal 2012.
Alliant spent $23.9 million on capital expenditure in the first
quarter of fiscal 2013, down 42.5% from the prior year.
Riding on the back of strong first-quarter results and a
lower-than-expected tax rate, the company raised its guidance for
Alliant now expects total revenue for fiscal 2013 in a band of
$4.05 billion to $4.15 billion, up from the prior range of $4.0
billion to $4.1 billion.
The company now expects earnings per share for fiscal 2013 in
the range of $7.00 to $7.30, up from $6.25 to $6.55 earlier.
Cash flow from operating activities for fiscal 2013 is expected
to range between $240 million and $265 million. Free cash flow for
the full year is expected to come in between $140 million and $165
million after capital expenditures of $100 million.
Among the top Alliant competitors,
General Dynamics Corporation
) announced operating earnings for the second quarter 2012 of $1.77
per share, beating the Zacks Consensus Estimate by three cents but
falling short of its year-ago results by 2 cents.
Operating revenue in the second quarter 2012 was $7.92 billion,
increasing 0.5% year over year and beating the Zacks Consensus
Estimate marginally by $7 million.
The company has started to report results under three operating
segments to increase the efficiency and competitiveness of its
business operations. We need to assess the results of the realigned
segments for a few more quarters before coming to any conclusion as
to its practical effectiveness.
Overall, the performance of the company during the reported
quarter was good. It kept up with its earnings-beat record of the
past four quarters. The strong financial performance in conjunction
with regular dividend payment makes this company attractive to
income seeking investors.
On the flip side, not unlike other defense operators, the future
growth prospects of the company are tied to the U.S. defense
budgets, which are expected to decline in the long run.
Alliant Techsystems currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating.
Based in Minneapolis, Minnesota, Alliant Techsystems supplies
aerospace and defense products to the United States government
agencies. The company also supplies ammunition and related
accessories to law enforcement agencies and commercial
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