Alliant Techsystems Inc.
) share price inched up 0.7% to $101.55 on Oct 14, 2013 from last
Thursday's closing price. This was primarily due to a positive
impact from an award-winning contract. On Oct 10, 2013, Alliant
received a contract, worth $102.4 million, from the U.S. Navy for
the second full-rate production lot ("FRP 2") of the Advanced
Anti-Radiation Guided Missile ("AARGM"). With this deal, the
company ended the contract drought after a period of almost two
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Per the agreement, Alliant will provide the AARGM and Captive Air
Training Missiles ("CATMs") to the U.S. Navy and Italian Air
Force, and will also supply the CATMs to the Royal Australian Air
The AARGM is the upgraded version of the AGM-88 High-Speed
Anti-Radiation Missile, used by the U.S. Navy. It is a medium
range air-to-ground missile. The missile is 417 centimeter long
with a diameter of 25.4 centimeter and weight of 361 kilogram.
The AARGM has a wingspan of 112 centimeter.
The main function of the AARGM is to target enemy air defenses.
The missile can destroy enemy air defenses and time-critical
AARGM is currently used by the U.S. Navy, U.S. Marine Corps and
Italian Air Force on their FA-18C/D Hornet aircraft, FA-18 E/F
Super Hornet aircraft, EA-18G Growler and Tornado ECR aircraft.
The missile can also be deployed at the F-35 and EA-6B.
The missiles' proven record and strong success rate enable
Alliant to receive orders from the domestic and foreign defense
authorities at regular intervals. On Sep 17, 2013, Alliant
announced that it has delivered the 100th AARGM to the U.S. Navy.
Moreover, the Royal Australian Air Force will be utilizing CATMs
for training purposes on its EA-18G Growler aircraft.
Alliant always tries to keep its commitments in terms of
maintaining product and service quality along with delivery
timing. This helps the company to win orders from different
defense establishments as well as private organizations.
However, the U.S. defense budget cutbacks and the current
volatility in the U.S. economy are our major cause of concern.
Alliant currently has a Zacks Rank #3 (Hold). However, other
stocks from the industry that are presently performing well
B/E Aerospace Inc.
Esterline Technologies Corp.
), each with a Zacks Rank #2 (Buy).