Alliant Techsystems Inc. (ATK) said one of its subsidiaries has been awarded a $32.5 million modification contract for a previously awarded military contract. The contract was awarded by the U.S. Department of Defense.
The modification contract received by the company’s Integrated Systems Division in Clearwater entails exercising an option for up to 1,700 replaceable assemblies for certain missile warning systems weapons. These systems will be installed on U.S. Navy, Marine Corps, Air Force and various foreign military helicopters, rotorcraft and fixed wing aircraft.
Minneapolis, Minnesota-based Alliant Techsystems is a premier aerospace, defense, and commercial products company with operations in 24 states, Puerto Rico, and internationallyrevenues of approximately $4.8 billion. The company supplies products to U.S. government agencies, and its prime contractors and sub-contractors. It also supplies ammunition and related accessories to law enforcement agencies and commercial customers.
Earlier in March, Alliant Techsystems received a $54 million order from the U.S. Army to supply 120mm training tank ammunition used by the M1A1/A2 Abrams main battle tank. Alliant has supplied more than four million rounds of 120mm tactical and training tank ammunition to the U.S. Army, U.S. Marine Corps, and allied militaries since 1980. Based on experience, Alliant has consistently been delivering the 120mm ammunition, which is both reliable and affordable.
In February 2011, Aerospace and defense company Alliant Techsystems reported third-quarter 2011 earnings of $2.09 per share, which surpassed the Zacks Consensus Estimate of $1.98. For fiscal 2011, the company expects EPS to be in the $8.90 – $9.10 range. The Zacks Consensus Estimates for fiscal 2011 and 2012 are $9.15 and $8.52 per share, respectively.
We retain our long-term Neutral recommendation on the stock. Also, Alliant currently has a short-term Zacks #3 Rank (Hold), which is in line with its closest peers General Dynamics Corp. (GD) and Raytheon Co. (RTN).
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