Alliant Techsystems Inc.
) jumped 2.1% to $97.20, thanks to the $17.1 million deal from
the U.S. Department of Defense (DoD) on Sep 23. With this deal,
the company ended the contract drought after an approximate
period of three weeks.
Per the contract, Alliant's unit Federal Cartridge Company will
provide .40-caliber ball and jacketed hollow point ammunition to
the Naval Criminal Investigative Services and the U.S. Coast
Guard. The naval departments will utilize these ammunitions for
training exercises and law enforcement activities.
Federal Cartridge Company will provide the services from its
facilities in Anoka, Minn. The contract is expected to be
completed by Sep 2018.
Alliant tries to keep its commitments in terms of maintaining
product and service standards along with delivery timing. This
helps the company to win orders from different government
establishments as well as private organizations at regular
In Aug 2013, Alliant received a firm-fixed-price,
option-eligible, non-multi-year contract from the U.S. DoD for
low rate initial production of the XM1156 Precision Guidance kit.
The contract came under the U.S. DoD's foreign military sales
contract for providing assistance to Australia.
We appreciate Alliant's continuous effort towards introducing new
technological applications and improving existing processes in
military and aerospace programs. During first quarter fiscal
2014, the company invested $10.4 million for the research and
Despite the pressure on defense companies from U.S. defense
budget cuts, Alliant has been able to surpass estimates and post
favorable results in the past couple of quarters. The favorable
results were primarily driven by a number of new contracts from
the U.S. and international defense departments on the back of
Alliant currently has a Zacks Rank #1 (Strong Buy). Other stocks
from the industry that are also presently performing well include
Elbit Systems Ltd.
) with a Zacks Rank #1 (Strong Buy), and
B/E Aerospace Inc.
), each with a Zacks Rank #2 (Buy).
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