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Orbital ATK Wins Lots 4, 5 Anti-Radiation Guided Missile Deal

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Dulles, VA-based aerospace and defense player, Orbital ATK, Inc.OA won a contract from the U.S. Navy to produce two lots of Advanced Anti-Radiation Guided Missile ("AARGM") for a combined value of $260 million. Orbital ATK expects AARGM to achieve initial operational capability on the Italian Air Force's Tornado ECR aircraft in 2017.

The full-rate production for the fourth lot of AARGM is valued at $119 million and the fifth lot at $141 million. The procurement involves the conversion of AGM-88B High-Speed Anti-Radiation Missiles to 142 AGM-88E All-Up-Rounds and 12 Captive Air Training Missiles.

AARGM is a supersonic, medium-range, air-launched tactical missile that provides the latest and most advanced weapon system to engage and destroy enemy air defenses and time-critical, mobile targets.

The missile furnishes an advanced system for pilots, with in-cockpit, real-time electronic order that provides battle situational awareness against modern threats that range from surface to air. AARGM quickly engages traditional and non-traditional advanced land- and sea-based threats.

In the second quarter of 2015, Orbital ATK reported pro forma earnings of $1.28 per share, outpacing the Zacks Consensus Estimate of $1.02 by 25.5% and increasing 16.4% from the comparable year-ago period.

The company clocked orders worth $1,360 million in the second quarter and its firm backlog stood at $8.4 billion as of Jul 5, 2014. Its total backlog was approximately $12.2 billion including options, indefinite quantity contract and undefinitized orders.

Zacks Rank

Orbital ATK currently has a Zacks Rank #3 (Hold). Some better-ranked aerospace and defense stocks are LMI Aerospace Inc. LMIA and Leidos Holdings, Inc. LDOS , each sporting a Zacks Rank #1 (Strong Buy) and Spirit AeroSystems Holdings, Inc. SPR , holding a Zacks Rank #2 (Buy).

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SPIRIT AEROSYS (SPR): Free Stock Analysis Report

LMI AEROSPACE (LMIA): Free Stock Analysis Report

LEIDOS HOLDINGS (LDOS): Free Stock Analysis Report

ORBITAL ATK INC (OA): Free Stock Analysis Report

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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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