Can Orbital ATK (OA) Beat Fiscal Q4 Earnings Estimates? - Analyst Blog
Orbital ATK, Inc. OA will release fiscal 2015 fourth quarter earnings results before the market opens on May 28, 2015. This aerospace and defense technologies company reported a positive earnings surprise of 4.50% last quarter. We expect Orbital ATK to beat expectation this quarter.
Why a Likely Positive Surprise?
Our proven model shows that Orbital ATK is likely to beat earnings because it has the right combination of two key ingredients. 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. This is the case here.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate of $1.14 and the Zacks Consensus Estimate of $1.10 per share, is at +3.64%. This is a meaningful and leading indicator of a likely positive earnings surprise for the shares.
Zacks Rank: The combination of Orbital ATK’s Zacks Rank #1 and +3.64% ESP makes us confident of an earnings beat.
The Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement.
What's Driving the Better-than-Expected Earnings?
Orbital ATK has a significant presence in both the defense and commercial aerospace markets. The company provides assistance to the Pentagon, U.S. law enforcement agencies and foreign governments. It is a pioneer in the fields of tactical missile propulsion, precision-guided munitions and advanced weapons. Consistent contracts received from its commercial and defense customers are expected to boost its performance this quarter.
The diverse product offerings of Orbital ATK are a catalyst. The company continues to support the National Aeronautics and Space Administration’s (NASA) missions by providing accessories either as the prime contractor or through merchant suppliers.
Releases from the Broader Sector
Here are some operators in the space which posted an earnings beat in their last reported quarter.
The Boeing Company BA delivered first-quarter 2015 earnings of $1.97 per share, beating the Zacks Consensus Estimate of $1.81 by 8.8%.
Raytheon Company RTN reported first-quarter 2015 earnings of $1.78 per share, beating the Zacks Consensus Estimate of $1.43 by 24.5%.
General Dynamics Corporation GD announced first-quarter 2015 earnings of $2.14 per share, comfortably surpassing the Zacks Consensus Estimate of $1.94 by 10.3%.
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BOEING CO (BA): Free Stock Analysis Report
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