Orbital ATK has been awarded a $92 million small-caliber ammunition order from the U.S. Army. The aerospace and defense company said that the order comprises 5.56 millimeter and 7.62 millimeter ammunition under Orbital ATK’s supply contract to produce small-caliber ammunition for the U.S. government at the Lake City Army Ammunition Plant (Lake City) in Independence, MO.

 

Orbital ATK is the largest manufacturer of small-caliber ammunition for the U.S. Department of Defense. Since 2000, it has produced more than 17 billion rounds of small-caliber ammunition to support the U.S. and allied war fighters around the globe at Lake City. The company, along with the U.S. Army, has made significant upgrades at the facility in recent years such as enhancing product quality; and performance, efficiency and operational improvements for safety and environmental stewardship.

 

 

Only last week, the company secured a $21 million contract from the U.S. Navy to produce MK419 Mod 1 Multi-Function Fuze (MFF). The MFF will increase the overall mission capability of 5-inch gun ammunition planted on the U.S. Navy ships. This marks a significant upgrade from the 1980s-era, single-dimension Naval Surface Fire Support munition. It will help the Navy counter multiple threats. (Read More: Orbital ATK Wins $21M Defense Order for Multi-Function Fuze)

 

Among other orders, in Jan 2017, the company received a $50 million order from the U.S. government to supply non-U.S. standard ammunition (NSA) for the Department of Defense in support of international allies. 

 

The company offers a wide range of products which assures a continuous source of revenues and inflow of new contracts.

 

 

President Donald Trump proposed a 10% hike in defense spending of fiscal 2018. The hike is expected to boost the aerospace and defense industry; thereby attracting more investors. (Read More: Has Trump Really Given a Boost to Defense Prospects?)

 

In Apr 2017, major companies received new orders from the different vertical of U.S. Defense.

 

Lockheed Martin (LMT Quick QuoteLMT - Free Report) received a US Navy contract exceeding $129 million which includes additional work on the TR-3 integrated core processor for the F-35. Raytheon Company won a modification contract worth $200 million from the U.S. Navy to procure 317 of the 17th Lot of AIM-9X Block II missiles – 107 for the Navy and 210 for the Air Force. The Boeing Co. (BA Quick QuoteBA - Free Report) won a $169-million modification contract from the U.S. Air Force (USAF) to upgrade F-15 Combined APG-63 Version 3 (V3) Radar Improvement Program and APG-82 Version 1 Radar Modernization Program (RMP) radar.

 

 

In the last six months Orbital ATK’s shares returned 34.8%, outperforming the Zacks categorized Aerospace - Defense Equipment industry’s gain of 18.5%. The company is expected to reap the benefits of President Trump’s strong defense policies.

 

 

 

Orbital ATK carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

 

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