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Orbital ATK (OA) Wins $76 Million Supply Order from US Army

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Orbital ATK recently signed a new supply order with the U.S. Army worth $76 million. The deal is for .50 caliber ammunition to the U.S. Army. Orbital ATK’s manufactures these small-caliber ammunition for the U.S. government in its Lake City Army Ammunition Plant (Lake City) in Independence, MO.

Earlier this month, Orbital ATK had received another $53 million order from the U.S. Army. Per this contract, the company will supply large-caliber training ammunition. (Read more: Orbital ATK Wins $53 Million Contracts from U.S. Army)

As the largest manufacturer of small-caliber ammunition for the U.S. Department of Defense, the company has supplied more than 17 billion rounds of small-caliber ammunition at Lake City to various verticals of the U.S Defense and the allied forces around the world.

Current Scenario in Defense Industry

Most countries, including U.S., have been actively focusing on new and improved technology to strengthen their defense in order to counter rising global terrorism. President Trump took a step ahead and proposed a 10% hike in defense spending of fiscal 2018. The hike is expected to boost the aerospace and defense industry; which will attract more investors. If the proposed hike is approved, it will open up possibilities of fresh orders for the major producers in the defense industry.

Orders Galore in Defense Space

In just last four day defense giants have won some deals.

Lockheed Martin Corp.’s (LMT - Free Report) Sikorsky Aircraft Corp. has won a modification contract from the U.S. Navy to provide the long-lead items in support of low-rate initial production of four Lot II CH-53K aircraft. (Read more: Lockheed Martin Wins $55M Deal for CH-53K Aircraft)

General Dynamics Corp.’s (GD - Free Report) business division, Ordnance and Tactical Systems, secured a modification contract worth $40.8 million. (Read more: General Dynamics' Unit Wins $41M Contract from U.S. Navy)

Northrop Grumman Corp.’s (NOC - Free Report) unit, Systems Corp. recently secured a contract to support the planned production schedule of MQ-4C Triton unmanned aircraft system (UAS). (Read more: Northrop Wins Deal to Support MQ-4C Triton Production)

Price Movement

In the last six months, shares of Orbital ATK increased 14.8%, outperforming the Zacks categorized Aerospace – Defense Equipment industry's gain of 5.1%.



The company stands tall with its strong order book that ensures consistent flow of revenue for the upcoming quarters.

Zacks Rank

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

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