Alliant Techsystems (ATK) +0.02% *contact to receive updated tearsheet*
The economic slowdown and subsequent budget constraints by many of the company’s clients has kept ATK’s share price down in recent weeks. Adding injury to insult, funding pressures at NASA and declining satellite activity has brought ATK’s space systems business (36 percent of revenue) into question. Nevertheless, strategic initiatives as well as various recent contract awards should help maintain ATK’s robust free cash flow and profitability.
ATK, the largest supplier of bullets to the U.S. armed forces, raised full-year guidance on October 30 after reporting better-than-expected fiscal second quarter results. The company cited strong armament sales as the primary reason for the outperformance. During the quarter ATK also won many new strategic programs, which led to the signing of several contracts, the largest of which was with the U.S. Navy.
ConAgra (CAG) +7.97%
CAG beat earnings expectations, but operating profits fell by 8 percent to $253 million due to cost inflation. The company reaffirmed its guidance for the full year, which is higher than analysts’ estimates.
Quick Hits
- A 10-point Checklist for Avoiding a Ponzi Fund
- In Spring 2001 Reporter Questioned Madoff Record
- Stock-Picking Dreams Might Pay in Obamanomics
- Companies that May Benefit From Obama Spending Plan (this list gets longer every week)
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Peter Lazaroff, Junior Analyst
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