Alliant Techsystems Rises on Higher Profit: Washington Mover
Stock Chart for Alliant Techsystems Inc (ATK)
Alliant Techsystems Inc. (ATK), the U.S. military’s largest ammunition maker, rose the most in nine months as higher defense sales helped first-quarter earnings top estimates. It raised its full-year forecast.
Alliant, known as ATK, increased 7 percent to close at $51.94 in New York, the biggest one-day gain since Nov. 3. The shares have decreased 9 percent this year.
Profit rose 4 percent to $70.8 million, or $2.16 a share, in the fiscal quarter ended July 1, from $67.8 million, $2.02 a share, in the year-ago period. Analysts had predicted profit of $1.42 a share, the average of 12 estimates compiled by Bloomberg.
“ATK recorded a solid quarter with strong program execution and orders flow and increased ammunition sales volume,” Chief Executive Officer Mark DeYoung said in a statement today.
The Arlington, Virginia-based company raised its full-year profit forecast to between $7 and $7.30 a share from between $6.25 to $6.55 a share.
Sales advanced less than 1 percent to $1.08 billion from the year-earlier period. Higher sales in defense and a commercial ammunition and accessories unit were partly offset by a decrease in the aerospace segment.
“The market has beaten up ATK over the last several months, but Q1 results should be enough to give it a boost, even if they were largely driven by Radford contract close-outs,” Joseph Nadol, a JPMorgan equity analyst in New York, wrote today in a note to clients. He was referring to a defense contract the company lost this year to BAE Systems Plc. (BA/)
The Pentagon on Jan. 24 awarded London-based BAE a contract to operate the Radford Army Ammunition Plant near Radford, Virginia. ATK had held the contract, valued at as much as $850 million over 10 years, since 1995.
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