Alliant Techsystems Inc.
) reported fourth quarter fiscal 2013 pro forma earnings of $2.22
per share, up 31.4% from the year-ago period. Lower interest
expense, falling tax rate owing to extension of the federal
R&D tax credit and solid performance by the Sporting business
led to the upswing in earnings.
Quarterly earnings also outpaced the Zacks Consensus Estimate
GAAP earnings per share were $2.23 compared with $1.86 per
share in the prior-year quarter. The difference of a penny
between pro forma and GAAP earnings was due to a one-time gain
from sales and profits associated with the Radford Army
Fiscal 2013 earnings in contrast decreased 7.7% to $7.10 from
last year primarily due to a decline in overall sales owing to
unfavorable business from the defense segment. It also lagged the
Zacks Consensus Estimate of $8.08.
2013 GAAP earnings were $8.34 per share versus $7.93 per share
in the prior year. The variance in GAAP and pro forma earnings of
$1.24 was due to a 90 cent gain associated with Radford Army
Ammunition Plant and a 34 cent gain from tax settlement.
Alliant's total revenue in the fourth quarter fiscal 2013 was
$1,153.9 million, surpassing the Zacks Consensus Estimate by
7.2%. Reported revenue however trailed the year-ago figure by
Revenue dropped owing to the combined downturn in Aerospace
and Defense sales, partially offset by robust bookings in the
Revenue in fiscal 2013 also plummeted 5.4% year over year to
$4,362.1 million. Revenue nevertheless beat the Zacks Consensus
Estimate by 7.7%.
: Sales from this segment in the quarter declined 5% to $342
million from the prior-year quarter. The year-over-year shortfall
was due to a decline in NASA spaceflight programs.
This segment reported sales of $492.0 million, down 27% year over
year due to a decrease in domestic and overseas sales at the
small caliber systems and closure of international contracts from
the Armaments division.
This segment registered a 14% increase in sales to $320 million
from the prior-year quarter. The sales growth can be attributed
to expansion in unit volume and ammunition price hike declared in
Alliant's cost of sales was $910.5 million, down 14.8% from
the year-ago quarter. Gross profit moved up marginally to $243.4
million from the prior-year period.
Interest expenses totaled $13.9 million, down 28% year over
year mainly due to the declining debt level.
Cash and cash equivalents as of Mar 31, 2013, were $417.3
million versus $568.8 million as of Mar 31, 2012.
Long-term debt as of Mar 31, 2013, was $1.02 billion versus
$1.3 billion as of Mar 31, 2012.
Cash provided by operating activities at fiscal year-end 2013,
was $274 million versus $372.3 million in the comparable year-ago
Alliant's capital expenditure was $96.9 million at the end of
Mar 2013, down 20.7% year over year. The company repurchased
shares worth $60 million in 2013 and has another $130.0 million
remaining in its share repurchase program.
Alliant forecast sales for fiscal 2014 in the range
$4.05-$4.15 billion while the earnings guidance is set in the
band of $7.50-$7.90 per share. The company's free cash flow is
estimated in the range $150-$175 million. The company expects its
full-year 2014 capital expenditure to be $125 million.
Other Aerospace and Defense Company Releases
Lockheed Martin Corporation
) posted first-quarter 2013 operating earnings of $2.48 per
share, which surpassed of the Zacks Consensus Estimate by
) reported first-quarter adjusted earnings of $1.56 per share,
beating the Zacks Consensus Estimate by 28 cents.
General Dynamics Corporation
) reported first quarter earnings of $1.62 per share, exceeding
the Zacks Consensus Estimate of $1.51 per share.
Alliant Techsystems yet again delivered a positive earnings
surprise in the fourth quarter fiscal 2013. The company is
expected to thrive on its diversified business, efficient cost
management as well as operational efficiency achieved through its
Further, its healthy dividend payout and effective share
repurchase programs will also lead to value accretion for
On the flip side, uncertainties related to federal budget
cutbacks would constrain Alliant's future opportunities. Alliant
Techsystems currently has a Zacks Rank #3 (Hold).
Arlington, VA-based Alliant Techsystems Inc. delivers
aerospace and defense products to the U.S. government agencies.
The company also supplies ammunition and related accessories to
law enforcement agencies and commercial customers.
ALLIANT TECHSYS (ATK): Free Stock Analysis
GENL DYNAMICS (GD): Free Stock Analysis
LOCKHEED MARTIN (LMT): Free Stock Analysis
RAYTHEON CO (RTN): Free Stock Analysis Report
To read this article on Zacks.com click here.