Stock Monitor: KLX Inc. Post Earnings Reporting
LONDON, UK / ACCESSWIRE / December 14, 2017 / Active-Investors free earnings report on Orbital ATK, Inc. (NYSE: OA) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=OA. Orbital ATK reported its third quarter fiscal 2017 operating results on November 02, 2017. The aerospace and defense technology Company outperformed top- and bottom-line expectations. Register today and get free access to our complimentary member's area where many more reports are available:
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Active-Investors.com is currently working on the research report for KLX Inc. (NASDAQ: KLXI), which also belongs to the Industrial Goods sector as the Company Orbital ATK. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Orbital ATK most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:
www.active-investors.com/registration-sg/?symbol=OA
Earnings Highlights and Summary
For the quarter ended September 30, 2017, Orbital's revenues advanced 16.6% to $1.22 billion compared to $1.04 billion in Q3 2016, with increased sales in all three business segments. The Company's revenue numbers exceeded analysts' expectations of $1.17 billion.
For Q3 2017, Orbital's income from operations and operating margin were $141.8 million and 11.7%, respectively, compared to $91.0 million and 8.7%, respectively, in Q3 2016. The Company's non-GAAP adjusted operating income and operating margin, which excluded certain transaction and restatement expenses, were $150.5 million and 12.4%, respectively in the reported quarter, compared to $99.0 million and 9.5%, respectively, in the year ago same period. Orbital's adjusted operating income increased 52.0% on a y-o-y basis, primarily due to unfavorable contract profit adjustments that occurred in Q3 2016.
Orbital posted earnings per diluted share of $1.64 in Q3 2017 compared to $1.04 in Q3 2016. The Company's reported quarter earnings reflected an income tax rate of 24.4% compared to an 18.0% rate for the year ago period. The tax rate in both periods benefited from research and development (R&D) tax credits. In addition, there were several favorable discrete events that occurred in Q3 2016, that did not reoccur in Q3 2017. Orbital's adjusted diluted earnings per share were $1.75 and $1.15 in Q3 2017 and 2016, respectively. The Company's earnings beat Wall Street's estimates of $1.56 per share.
New Business Summary
During Q3 2017, Orbital received new firm and option orders of approximately $1.44 billion and existing option exercises of $400 million, for a total of $1.84 billion in quarterly new business volume. These new awards increased firm contract backlog to approximately $9.6 billion and total backlog to about $15.7 billion, representing new record levels and increases of 5% and 3%, respectively, on a y-o-y basis.
Orbital's DSG accounted for $1.02 billion, or 56%, of Q3 2017 new business volume, with the FSG contributing $525 million, or 28%, and the SSG adding $290 million, or 16%, of the total volume. The Company's reported quarter firm book-to-bill ratio was 117%.
Orbital's Segment Financial Results
Orbital conducts its operations in three business segments: Flight Systems Group (FSG), Defense Systems Group (DSG), and Space Systems Group (SSG).
During Q3 2017, the FSG segment's revenues advanced 17.4% to $426 million on y-o-y basis, primarily due to higher activity in the Aerospace Structures and Launch Vehicles Divisions. The segment's quarterly operating income surged 39.9% to $61.4 million on y-o-y basis, attributed to higher margins on certain Aerospace Structures and Propulsion Systems Divisions contracts and unfavorable profit adjustments in Q3 2016 that did not occur at the same level in 2017.
For Q3 2017, the DSG segment's revenues grew 12.9% to $515 million on a y-o-y basis, largely due to higher activity on Armament Systems and Missile Products Divisions contracts. The segment's adjusted operating income surged 38.0% to $48.3 million.
The SSG division revenues advanced 26.6% to $314 million on a y-o-y basis for Q3 2017, largely due to higher activity on Satellite Systems and Advanced Programs Divisions contracts. The segment's adjusted operating income soared 102.1% to $39.4 million, primarily due to higher activity and unfavorable profit adjustments in 2016.
Cash Matters
During Q3 2017, Orbital's free cash flow was $153.0 million compared to negative $8.5 million in Q3 2016. The Company's adjusted free cash flow, which excluded certain restatement-related cash expenses totaling $0.6 million, was $153.6 million in the reported quarter.
During Q3 2017, Orbital returned approximately $25 million to shareholders in the form of dividends and share repurchases. The Company also invested about $70 million in R&D and capital equipment in the reported quarter.
Stock Performance Snapshot
December 13, 2017 - At Wednesday's closing bell, Orbital ATK's stock slightly declined 0.30%, ending the trading session at $131.75.
Volume traded for the day: 1.16 million shares, which was above the 3-month average volume of 835.51 thousand shares.
Stock performance in the last three-month – up 21.55%; previous six-month period – up 32.29%; past twelve-month period – up 52.14%; and year-to-date – up 50.18%
After yesterday's close, Orbital ATK's market cap was at $7.62 billion.
Price to Earnings (P/E) ratio was at 24.30.
The stock has a dividend yield of 0.97%.
The stock is part of the Industrial Goods sector, categorized under the Aerospace/Defense Products & Services industry. This sector was up 0.5% at the end of the session.
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