Orbital ATK soared past Wall Street projections with $72.8 million in second-quarter profit, fueled by boosted contributions by its space and flight systems groups.
The Dulles, Va.-based company’s quarterly net income amounted to $1.28 per share after adjustments for non-recurring costs. That well exceeded the consensus Street forecast of $1.02 per share.
Publicly traded Orbital (NYSE: OA) was formed from the February merger of Orbital Sciences Corp. and Alliant Techsystems Inc. Its adjusted financial results excluded merger costs and other non-recurring expenses.
In a pro forma comparison, Orbital’s year-earlier earnings amounted to $1.10 per share.
Over the first six months of 2015, its six-month profit was up 4 percent to $144.1 million, amid a 2 percent rise in revenue to $2.25 billion.
“These results benefited from outstanding new orders, as well as continued solid operational execution on our major programs,” CEO David Thompson said.
Company shares closed up almost 7 percent on news of the Orbital financial results, released prior to the opening bell Aug. 6.
The stock, which approached a share price of $77, has a 52-week range of $46.76-$80.99.
Orbital makes aerospace launch vehicles including rockets for cargo shuttles to the International Space Station. Unlike competitor SpaceX, which makes its own components for the large majority of its spacecraft, Orbital largely uses components manufactured by others.
There is an ongoing investigation into the Oct. 28 explosion of Orbital’s ISS-bound cargo rocket, with a Russian rocket engine suspected of causing the mishap. The company has said it will stop using those engines in future launches.
Orbital is also active in systems for satellites, tactical missiles, defense electronics and other areas of aerospace tech.
Breaking out the company’s Space Systems Group, operating income rose a whopping 167% to $41.4 million in the latest quarter.
Group revenue rose 17% to $310.1 million.
In Orbital’s Flight Systems Group — which includes its Launch Vehicle division — quarterly operating income rose 31% to $58.1 million, amid an 8 percent rise in revenue to $398.1 million.
Defense Systems operating income dipped 3 percent to $44.5 million, while revenue was roughly static at $439.8 million.
New orders continued to come in for Orbital during the second quarter. Those included a $98 million agreement with Lockheed Martin to provide the launch-abort motor for the Orion, a manned spacecraft in development for NASA.