Alliant Rises on Bushnell Buy & Q2 Earnings - Analyst Blog
November 11 2013 - 9:04AM
Zacks
The shares of Alliant Techsystems Inc. (ATK),
the aerospace and defense products and service provider, moved
higher thanks to the completion of acquisition of Bushnell Group
Holding Inc. on Nov 4 and strong second quarter fiscal 2014 results
released on Nov 7. The share price has gained 3.9% from Nov 4 to
end at $115.15 on Nov 8.
The Bushnell deal was first announced on Sep 5, 2013. The addition
of this leading global designer, marketer and distributor of
branded sports optics will expand the customer base and operational
reach of Alliant’s Sporting group division.
Bushnell Group had estimated calendar year 2013 revenues to touch
$600 million. The acquisition will provide Alliant access to more
than 10,000 customer accounts of Bushnell in more than 90 countries
worldwide. Alliant expects the acquisition to be accretive to
earnings by $1.00 per share by fiscal 2016.
We believe the acquisition is well timed as Alliant is doing well
on the operational front. Alliant has surpassed the Zacks Consensus
Estimate in the last 11 quarters and has the fundamentals in place
to keep the earnings streak alive.
The company reported second quarter fiscal 2014 pro forma
earnings of $2.82 per share, up 50.0% from the year-ago period.
Lower interest expense and solid performance by the Sporting
business led to the earnings upswing. Alliant’s second quarter
fiscal 2014 revenue was $1,142.4 million, also exceeding the
year-ago figure by 6.8%. Revenue increased on the back of Aerospace
and Defense and Sporting Group sales, partially offset by a decline
in contribution from Defense Group.
The company was also able to lower its long-term debt level in
the first six months of fiscal 2014, which has lowered its interest
burden by 15% year over year to $15.2 million.
Alliant presently has a Zacks Rank #1 (Strong Buy). Other operators
in the sector also doing well include Exelis Inc.
(XLS), Teledyne Technologies Inc. (TDY) and
TransDigm Group Inc. (TDG), each with a Zacks Rank
#2 (Buy).
ALLIANT TECHSYS (ATK): Free Stock Analysis Report
TRANSDIGM GROUP (TDG): Free Stock Analysis Report
TELEDYNE TECH (TDY): Free Stock Analysis Report
EXELIS INC (XLS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
MS 8% Xilinx Sparqs (AMEX:XLS)
Historical Stock Chart
From May 2024 to Jun 2024
MS 8% Xilinx Sparqs (AMEX:XLS)
Historical Stock Chart
From Jun 2023 to Jun 2024
Real-Time news about MS 8% Xilinx Sparqs (American Stock Exchange): 0 recent articles
More MS 8% Xilinx Sparqs News Articles