Aerospace and defense company
Alliant Techsystems Inc.
) is slated to release its first-quarter fiscal 2013 earnings
results before market open on August 9, 2012.
Alliant Techsystems' operating earnings of $1.86 per share for its
fourth quarter of fiscal 2012 ended March 31, 2012, exceeded the
Zacks Consensus Estimate of $1.70 but fell short of the year-ago
earnings of $2.10 per share.
The year-over-year decline in earnings was due to margin
pressure in its Security and Sporting segment as commodities cost
rose and defense contracts got delayed. Besides, charges incurred
to realign the business segment and higher pension expenses
Alliant's total revenue in the fourth quarter of fiscal 2012 was
$1,316.2 million, up from $1,301.6 million reported in the year-ago
quarter. Alliant's revenues during the quarter surpassed the Zacks
The results were driven by better execution at the Missile
Products and Security and Sporting segments, marginally offset by a
slackened performance at Aerospace Systems and Armament
The company incurred a steeper cost of sales in the fourth
quarter compared with the prior-year quarter. Consequently, gross
profit of the company decreased 8.6% in the reported quarter to
Alliant's total operating expenses declined in the fourth
quarter by 19.4% on a year-over-year basis. The dip was primarily
due to the decline in general & administrative expenses.
Guidance for Fiscal 2013
Alliant expects total revenue for fiscal 2013 in a band of $4.0
billion to $4.1 billion.
The company now expects earnings per share for fiscal 2013 in
the range of $6.25 to $6.55. Alliant has raised its earnings
expectation by 25 cents as pension expenses are likely to be $15
million lower than the previous expectation.
The Zacks Consensus Estimate for the first quarter of fiscal 2013
is $1.40 per share, an estimated decline of 30.5% from $2.02
reported in the year-ago quarter. The current Zacks Consensus
Estimate ranges between $1.28 per share and $1.51 per share.
The fiscal 2013 Zacks Consensus Estimate is $6.47, down 26.4%
from $8.78 reported in the prior year. The current Zacks Consensus
Estimate ranges between $6.65 and $6.25 per share.
Estimate Revisions Trend
There were no changes in the quarterly estimates in the last 7
and 30 days.
For fiscal 2013 too none of the estimates were changed in the
past 7 and 30 days.
The consensus estimates for first quarter 2013 and full year
2013 have remained stagnant over the last 7 and 30 days because of
a stalemate in estimate revsions.
The company has consistently surpassed our expectation in the
last four quarters. The earnings surprise in the last four quarters
ranged from 2.02% to 12.87%. The average surprise over the last
four quarters is 6.93%.
Alliant Techsystems is a well-diversified aerospace and defense
contractor delivering products and solutions that are vital to the
preservation of U.S. national security. We believe Alliant's
decision to realign its reporting segments into three business
units will make the company more competitive and increase the
efficiency of operation.
The company has been registering steady organic growth and has
also benefited from strategic acquisitions. Leveraging its
financial strength, the company has been able to repay debts,
authorize share repurchases and pay dividends. These initiatives
will help the company to maximize investor wealth and attract
Alliant however faces competition from a number of players in
specific business niches. Some of its primary competitors are
Rockwell Collins Inc.
Spirit AeroSystems Holdings Inc.
). Its future growth prospects are also tied to the
U.S. defense budgets, which are expected to decline in the long
run. Given the pros and cons, the stock retains a Zacks #3Rank
implying a short-term Hold rating.
Based in Minneapolis, Minnesota, Alliant Techsystems supplies
aerospace and defense products to the United States government
agencies. The company also supplies ammunition and related
accessories to law enforcement agencies and commercial
ALLIANT TECHSYS (ATK): Free Stock Analysis
ROCKWELL COLLIN (COL): Free Stock Analysis
SPIRIT AEROSYS (SPR): Free Stock Analysis
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