Alliant Techsystems Inc.
) reported second quarter fiscal 2014 pro forma earnings of $2.82
per share, up 50.0% from the year-ago period. Lower interest
expense and solid performance by the Sporting business led to the
upswing in earnings.
Quarterly earnings also outpaced the Zacks Consensus Estimate
of $2.37 by 18.9%.
GAAP earnings per share were $2.86 compared with $2.00 per
share in the prior-year quarter. The difference between pro forma
and GAAP earnings was due to a one-time impact of 4 cents coming
from inventory step-up and tax law changes.
Alliant's total revenue in the second quarter fiscal 2014 was
$1,142.4 million, surpassing the Zacks Consensus Estimate by
2.2%. Reported revenue also exceeded the year-ago figure by
Revenue increased on the back of Aerospace and Defense and
Sporting Group sales, partially offset by a decline in
contribution from Defense Group.
: Sales from this segment in the quarter increased 1% to $319
million from the prior-year quarter. The year-over-year increase
reflects increased sales in the Space Components and Space
Systems Operations divisions.
This segment reported sales of $472.0 million, down 9% year over
year due to a sales decline at the Small Caliber Systems,
partially offset by increasing sales in the Missile Products
: This segment registered a 48% increase in sales to $421 million
from the prior-year quarter. The increase in sales was driven by
higher volume in ammunition, sales from Savage of $57 million,
and a previously announced ammunition price increase.
Corporate and Other
: Corporate and other expenses totaled $5 million compared with
$16 million in the prior-year quarter, reflecting lower pension
expense, partially offset by transaction costs related to
Alliant's cost of sales was $874.9 million, up 3.9% from the
year-ago quarter. Gross profit moved up to $267.4 million from
$228.3 million registered in the prior-year period.
Interest expenses totaled $15.2 million, down 16% year over
year mainly due to the declining debt level.
Cash and cash equivalents as of Sep 29, 2013, were $112.9
million versus $417.3 million as of Mar 31, 2013.
Long-term debt as of Sep 29, 2013, was $0.82 billion versus
$1.02 billion as of Mar 31, 2013.
Cash provided by (used in) operating activities in the first
six months of fiscal 2014, was $42.5 million versus ($32.8)
million in the comparable year-ago period.
Alliant's capital expenditure was $52.3 million at the end of
the first six months of fiscal 2014 versus $40.2 million in the
comparable period of the previous year.
The company repurchased shares worth $24 million in the second
quarter of fiscal 2014, taking the total tally to $108 million
since the Board of Directors established the two-year repurchase
Alliant increased its sales forecast for fiscal 2014 to the
range of $4.68-$4.73 billion from the previous guidance of
$4.30-$4.38 billion, taking into consideration its strong
operating performance and contribution from the Bushnell
Alliant's fiscal 2014 earnings expectation is now $9.10 to
$9.40, up from its previous guidance of $8.60 to $9.00, on the
back of a higher top line.
Alliant expects full-year fiscal 2014 free cash flow in the
range of $210 million to $230 million, up from the previous
guidance of $200 million to $225 million.
Other Company Releases
Lockheed Martin Corporation
) posted third-quarter 2013 operating earnings of $2.57 per
share, which surpassed of the Zacks Consensus Estimate of $2.26
) reported third-quarter adjusted earnings of $1.51 per share,
beating the Zacks Consensus Estimate of $1.33 by 13.5%.
General Dynamics Corporation
) reported third quarter earnings of $1.84 per share, exceeding
the Zacks Consensus Estimate of $1.68 by 9.5%.
Alliant Techsystems yet again delivered a positive earnings
surprise. The contribution from its Bushnell acquisition is going
to further boost performance.
Even though the company continues to perform well,
uncertainties related to federal budget cutbacks could constrain
its future prospects.
Alliant Techsystems currently has a Zacks Rank #2 (Buy).
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