Rocket company Orbital ATK outperformed expectations with a 15 percent rise in adjusted fourth-quarter profit and a 2 percent revenue increase to $1.14 billion, as new orders in divisions including Space Systems maintained a hot pace.
On a per share basis, Orbital (NYSE: OA) posted quarterly non-GAAP earnings of $1.45 per share, outpacing the Zacks Investment Research consensus forecast of $1.09.
Over 12 months, Orbital reported a 20 percent boost in adjusted net income to $298.9 million. Annual revenue rose 2 percent to $4.52 billion on a non-GAAP basis.
The latest results move the Dulles, Va.-based company’s fiscal year to a calendar year from a previous April-through-March basis.
“Orbital ATK completed the year with strong financial and operational results for both the fourth quarter and full year,” CEO David Thompson said.
Orbital also revealed that a recent accounting review indicated the need for a restatement of the last two quarters due to post-merger consideration. Orbital ATK was created last year with the merger of Orbital Sciences and parts of Alliant Techsystems.
Release of the company’s financial results follow a successful return to flight for Orbital in December after a protracted probe into a 2014 rocket explosion. The company also started 2016 on the front foot, as it placed among three companies tapped by NASA to be contractors on cargo shipments to the International Space Station beginning in 2019.
Orbital released the financials results several hours after the close of trading Feb. 29. Orbital shares started the March 1 session trading down and dipping below the $80 mark after recently trading toward the higher end of a 52-week price range of $56.06 and $94.92.
Ultimately, it appeared investors may have focused more on the need for some quarterly restatements than the positive news issued for the latest quarter. Orbital shares closed down $5.85, or 7 percent, at $77.91 despite a roundly upbeat broader market throughout the March 1 session.
On Jan. 4, the Orbital board declared a 15 percent increase in the quarterly cash dividend paid to stockholders, to 30 cents per share. The dividend is payable March 24 to stockholders of record as of March 7.
Looking ahead, Orbital and mission partner United Launch Alliance are targeting a launch date of March 22 for a cargo resupply mission to the International Space Station.
> Read about Orbital’s third-quarter results.