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What's in Store for Orbital ATK (OA) This Earnings Season?
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Orbital ATK, Inc. is slated to release fourth-quarter 2016 financial results before the market opens on Mar 8. Let’s see how things are shaping up prior to this announcement.
Factors to Consider
The aerospace and defense industry is a direct beneficiary of a volatile and uncertain geopolitical global backdrop, characterized by terrorist threats, civil wars and border disputes. So, Orbital ATK’s fourth quarter revenues are poised to be a direct beneficiary.
The company projects new business in the fourth quarter to be around $1.2 billion. The total backlog of $15.2 billion (as of Oct 2, 2016) provides excellent visibility to near-term top-line growth. Orbital ATK projects 2016 EPS to be in the range of $5.30–$5.50 and revenues in the range of $4,450–$4,500 million.
Earnings Whispers
Our proven model does not conclusively show that Orbital ATK is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: Orbital ATK has an Earnings ESP of 0.00%. This is because the Most Accurate estimate stands in line with the Zacks Consensus Estimate of $1.45.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Peer Releases
Pentagon’s prime contractor, Lockheed Martin Corp. (LMT - Free Report) , reported fourth-quarter 2016 earnings from continuing operations of $3.25 per share, which surpassed the Zacks Consensus Estimate of $3.04 by 6.9%. Earnings also increased 23.6% from the year-ago level, courtesy strong revenues and operating margin growth.
Textron Inc. (TXT - Free Report) reported fourth-quarter 2016 adjusted earnings from continuing operations of 80 cents per share that missed the Zacks Consensus Estimate of 87 cents by 8%.
General Dynamics Corporation (GD - Free Report) reported fourth-quarter 2016 earnings from continuing operations of $2.62 per share, which beat the Zacks Consensus Estimate of $2.54 by 3.1%. Reported earnings were also up 9.2% from $2.40 recorded in the year-ago quarter.
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What's in Store for Orbital ATK (OA) This Earnings Season?
Orbital ATK, Inc. is slated to release fourth-quarter 2016 financial results before the market opens on Mar 8. Let’s see how things are shaping up prior to this announcement.
Factors to Consider
The aerospace and defense industry is a direct beneficiary of a volatile and uncertain geopolitical global backdrop, characterized by terrorist threats, civil wars and border disputes. So, Orbital ATK’s fourth quarter revenues are poised to be a direct beneficiary.
The company projects new business in the fourth quarter to be around $1.2 billion. The total backlog of $15.2 billion (as of Oct 2, 2016) provides excellent visibility to near-term top-line growth. Orbital ATK projects 2016 EPS to be in the range of $5.30–$5.50 and revenues in the range of $4,450–$4,500 million.
Earnings Whispers
Our proven model does not conclusively show that Orbital ATK is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: Orbital ATK has an Earnings ESP of 0.00%. This is because the Most Accurate estimate stands in line with the Zacks Consensus Estimate of $1.45.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Orbital ATK, Inc. Price and EPS Surprise
Orbital ATK, Inc. Price and EPS Surprise | Orbital ATK, Inc. Quote
Zacks Rank: Orbital ATK has a Zacks Rank #3, which when combined with a 0.00% ESP, makes surprise prediction difficult.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Peer Releases
Pentagon’s prime contractor, Lockheed Martin Corp. (LMT - Free Report) , reported fourth-quarter 2016 earnings from continuing operations of $3.25 per share, which surpassed the Zacks Consensus Estimate of $3.04 by 6.9%. Earnings also increased 23.6% from the year-ago level, courtesy strong revenues and operating margin growth.
Textron Inc. (TXT - Free Report) reported fourth-quarter 2016 adjusted earnings from continuing operations of 80 cents per share that missed the Zacks Consensus Estimate of 87 cents by 8%.
General Dynamics Corporation (GD - Free Report) reported fourth-quarter 2016 earnings from continuing operations of $2.62 per share, which beat the Zacks Consensus Estimate of $2.54 by 3.1%. Reported earnings were also up 9.2% from $2.40 recorded in the year-ago quarter.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>