Orbital ATK 1Q Earnings Meet Street Outlook, Miss on Revenue; Huntington Ingalls 1Q & Maximus 2Q Results Top Analyst Estimates

Three companies listed in Executive Mosaic’s GovCon Index reported quarterly financial results before U.S. financial markets opened Thursday with one in-line against analyst expectations for earnings per share and below on revenue and the other two contractors above Wall Street’s outlook for both figures.

Dulles, Virginia-based space vehicle manufacturer Orbital ATK (NYSE: OA) met the consensus Wall Street forecast for first quarter earnings but missed on revenue due to timing of certain events in programs and milestone payments.

Newport News-based shipbuilder Huntington Ingalls Industries (NYSE: HII) topped analysts’ first quarter expectations for both earnings per share and revenue, as did Reston-headquartered health and human services contractor Maximus (NYSE: MMS) for the second fiscal quarter.

Of note, Orbital ATK changed its fiscal calendar in March 2015 to run on a January-December basis and reported first quarter results as compared to the company’s previously-reported fourth quarter of the fiscal year ended March 31, 2015.

The company also stated its financial results and comparisons as if the company were created on Jan. 1, 2015 through the merger of the businesses formerly known as Orbital Sciences Corp. and the ATK aerospace and defense groups that closed Feb. 9, 2015.

Below is a summary of results and other items from these three companies’ financial statements.

Orbital ATK (NYSE: OA):

• Earnings per share: $1.31 in-line with Wall Street estimate
• Profit: $76.9 million, up 14.09 percent from prior year period
• Revenue: $1.06 billion, down 4.5 percent, misses Wall Street estimate of $1.14 billion
• Guidance: Unchanged at $5.25-to-$5.50 EPS and $4.57 billion-to-$4.65 billion revenue
• Notes:
  • Lower shipping volume in defense systems segment compared to January-March 2015 period
  • Armament orders from Middle East and other international regions also down year-over-year
• Shares are down 2.08 percent from the year’s start and up 16.59 percent over 12 months

Huntington Ingalls Industries (NYSE: HII):

• Earnings per share: $2.87 per share beats Wall Street estimate by 74 cents
• Profit: $1366 million, up 56.32 percent from prior year period
• Revenue: $1.76 billion, up 12.1 percent,  beats Wall Street estimate of $1.59 billion
• Guidance: Not stated
• Notes:
  • Ingalls segment revenue up 24.94 percent on surface and amphibious assault ship volume
  • Newport News segment revenue up 8.49 percent on energy and submarine activity
• Shares are up 15.07 percent from the year’s start and 8.34 percent over 12 months

Maximus (NYSE: MMS) (Second quarter for fiscal year 2016):

• Earnings per share: 74 cents beats Wall Street estimate by 12 cents
• Profit: $48.78 million,  up 25.72 percent from prior year period
• Revenue: $606.45 million, up 25.87 percent,  beats Wall Street estimate of $600.99 million
• Guidance:
  • Earnings adjusted to $2.50-to-$2.70 per share from previous $2.40-to-$2.50 range
  • Revenue unchanged at $2.4 billion-to-$2.5 billion
• Notes:
  • Organic revenue up 13 percent excluding sales via acquisitions Acentia, Ascend and Remploy
  • U.K. health assessment advisory service contract scheduled for full productivity in summer
• Shares are down 7.08 percent from the year’s start and 20.05 percent over 12 months