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Orbital ATK Seals $203M Small Caliber Ammo Army Contracts

Premier aerospace & defense company Orbital ATKOA received contracts worth $203 million from the U.S. Army over the last few months to supply small caliber ammunition. In fact, Orbital ATK is the largest supplier of U.S. Army small caliber ammunition.

The company will produce a variety of small caliber ammunition for the U.S. government at the Lake City Army Ammunition Plant (Lake City) in Independence, MO. The U.S. Army had placed orders for .30 caliber, .50 caliber, 5.56mm and 7.62mm ammunition over the past few months.

Orbital ATK's Defense Systems Group is an industry leader in providing innovative and affordable precision and strike weapons, advanced propulsion and hypersonics, missile components across air-, sea- and land-based systems, ammunition and related energetic products. The company provides high quality and advanced equipment to the Army, thanks to its ongoing research and development efforts.

Orbital ATK's varied product-line enables it to clinch contracts at regular intervals from its customers. The company is quite optimistic about its performance this year, supported by a sturdy backlog of $12.2 billion at the end of first-half 2015. The backlog includes options, indefinite quantity contract and undefinitized orders.

The defense majors in the U.S. are working on how to grow profitably from diminishing defense budgets and slash costs for maintaining a satisfactory financial condition. Orbital ATK has another avenue of generating revenues and that is from its commercial customers. Orbital ATK started production of advanced composite primary structures for The Boeing Company's BA 787 Dreamliner.

Zacks Rank

Orbital ATK currently has a Zacks Rank #3 (Hold). Some better-ranked aerospace and defense stocks include Leidos Holdings, Inc. LDOS and General Dynamics Corporation GD . Both stocks carry a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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