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Orbital ATK (OA) Beats Q1 Earnings and Revenue Estimates
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Orbital ATK, Inc. posted first-quarter 2018 adjusted earnings of $1.76 per share, which beat the Zacks Consensus Estimate of $1.50 by 17.3%. Earnings improved 43.1% year over year from $1.23.
In the first quarter of 2018, reported GAAP earnings excluding onetime items were $1.74 per share, up 51.3% year over year from $1.15.
Total Revenues
Orbital ATK's total revenues were $1,312 million, surpassing the Zacks Consensus Estimate of $1,134 million by 15.69%. Revenues were up 20.9% from the year-ago quarter’s $1,085 million, courtesy of increased sales volume in all three segments.
Orbital ATK, Inc. Price, Consensus and EPS Surprise
Flight Systems Group: Revenues in the segment rose 30% year over year to $482 million on the back of higher activity in Aerospace Structures Division, driven by major aircraft program ramp-ups.
Defense Systems Group: Revenues in the segment totaled $559 million, up 24% year over year on higher activity in Defense Electronics Systems, Armament Systems and Small Caliber Systems Divisions.
Space Systems Group: Revenues in the segment were $316 million, up 5% year over year owing to higher activity on Satellite Systems Division contracts.
Highlights of the Release
Research and development expenses in the first quarter totaled $100 million. Consistent investment in research enabled the company to upgrade existing products and develop new ones.
Orbital ATK paid nearly $18 million dividend to shareholders in the first quarter. The company discontinued its share repurchase program due to the ongoing acquisition deal with Northrop Grumman (NOC - Free Report) .
In the first quarter, Orbital ATK's firm contract backlog increased to approximately $9.4 billion as of Apr 1, as it received new firm and option orders. Total backlog was approximately $16.6 billion, up 12%.
Total adjusted operating income improved 21.9% to $154.9 million from $127.1 million in the year-ago quarter.
Financial Highlights
Net cash from operating activities was $237 million and adjusted free cash flow was $304.3 million in the first quarter.
Capital expenditure was $71.3 million in the first quarter, up from $42.7 million in the year-ago quarter.
The Boeing Company (BA - Free Report) reported adjusted earnings of $3.64 per share in first-quarter 2018, beating the Zacks Consensus Estimate of $2.59 by 40.5%.
Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2018 earnings of $4.02 per share from continuing operations which surpassed the Zacks Consensus Estimate of $3.35 by 20%.
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Orbital ATK (OA) Beats Q1 Earnings and Revenue Estimates
Orbital ATK, Inc. posted first-quarter 2018 adjusted earnings of $1.76 per share, which beat the Zacks Consensus Estimate of $1.50 by 17.3%. Earnings improved 43.1% year over year from $1.23.
In the first quarter of 2018, reported GAAP earnings excluding onetime items were $1.74 per share, up 51.3% year over year from $1.15.
Total Revenues
Orbital ATK's total revenues were $1,312 million, surpassing the Zacks Consensus Estimate of $1,134 million by 15.69%. Revenues were up 20.9% from the year-ago quarter’s $1,085 million, courtesy of increased sales volume in all three segments.
Orbital ATK, Inc. Price, Consensus and EPS Surprise
Orbital ATK, Inc. Price, Consensus and EPS Surprise | Orbital ATK, Inc. Quote
Segmental Update
Flight Systems Group: Revenues in the segment rose 30% year over year to $482 million on the back of higher activity in Aerospace Structures Division, driven by major aircraft program ramp-ups.
Defense Systems Group: Revenues in the segment totaled $559 million, up 24% year over year on higher activity in Defense Electronics Systems, Armament Systems and Small Caliber Systems Divisions.
Space Systems Group: Revenues in the segment were $316 million, up 5% year over year owing to higher activity on Satellite Systems Division contracts.
Highlights of the Release
Research and development expenses in the first quarter totaled $100 million. Consistent investment in research enabled the company to upgrade existing products and develop new ones.
Orbital ATK paid nearly $18 million dividend to shareholders in the first quarter. The company discontinued its share repurchase program due to the ongoing acquisition deal with Northrop Grumman (NOC - Free Report) .
In the first quarter, Orbital ATK's firm contract backlog increased to approximately $9.4 billion as of Apr 1, as it received new firm and option orders. Total backlog was approximately $16.6 billion, up 12%.
Total adjusted operating income improved 21.9% to $154.9 million from $127.1 million in the year-ago quarter.
Financial Highlights
Net cash from operating activities was $237 million and adjusted free cash flow was $304.3 million in the first quarter.
Capital expenditure was $71.3 million in the first quarter, up from $42.7 million in the year-ago quarter.
Zacks Rank
Orbital ATK carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Defense Releases
The Boeing Company (BA - Free Report) reported adjusted earnings of $3.64 per share in first-quarter 2018, beating the Zacks Consensus Estimate of $2.59 by 40.5%.
Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2018 earnings of $4.02 per share from continuing operations which surpassed the Zacks Consensus Estimate of $3.35 by 20%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>