We have maintained our Outperform recommendation on
Alliant Techsystems Inc. ( ATK ). The company
currently has a Zacks Rank #2 (Buy).ALLIANT TECHSYS (ATK): Free Stock Analysis
ReportCAE INC (CAE): Free Stock Analysis ReportROCKWELL COLLIN (COL): Free Stock Analysis
ReportESTERLINE TECHN (ESL): Free Stock Analysis
ReportTo read this article on Zacks.com click here.Zacks Investment
Why the Reiteration?
In the third-quarter of fiscal 2013, Alliant's earnings per share
and revenues surpassed the Zacks Consensus Estimates primarily to
higher profit margins at the Aerospace and Sporting Groups.
Recently, Alliant completed its segment realignment. We expect
this to maximize the company's operational efficiency, enhance its
ability to meet customer requirements and reduce operating costs.
This initiative will gradually improve the overall financial
In the last couple of years, Alliant has grown substantially as a
result of both internal expansions and a series of acquisitions.
The company acquired a number of companies including Blackhawk
Industries Products Group, Unlimited LLC and Eagle Industries in
the past five years. These acquisitions significantly expanded the
company's sales into the tactical accessories market, enabling it
to leverage its existing distribution network to gain market-share
while realizing synergies.
The current Zacks Consensus Estimate for fourth-quarter fiscal
2013 of $1.89 per share exceeded the year-ago figure by
For fiscal 2013, Alliant increased its earnings guidance in the
range of $7.90-$8.10 per share from its earlier projection of
$7.40-$7.70 per share primarily due to increased sales estimates
and improved operating results.
Other Stocks to Consider
Other stocks in the aerospace and defense sector that are
presently doing favorable business include Esterline
Technologies Corporation ( ESL ), having a Zacks
Rank #1 (Strong Buy), and Rockwell Collins Inc. (
COL ) and
CAE Inc. ( CAE ) with Zacks Rank
Arlington, Virginia-based Alliant Techsystems Inc. provides
aerospace and defense products to the U.S. government agencies.