The 10-second takeaway
For the quarter ended Jan. 1 (Q3), Alliant Techsystems met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped significantly.
Gross margins increased, operating margins dropped, net margins shrank.
Alliant Techsystems reported revenue of $1.12 billion. The 11 analysts polled by S&P Capital IQ predicted a top line of $1.13 billion. Sales were 1.0% lower than the prior-year quarter's $1.13 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $2.28. The seven earnings estimates compiled by S&P Capital IQ forecast $2.02 per share on the same basis. GAAP EPS of $1.51 for Q3 were 28% lower than the prior-year quarter's $2.09 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 22.0%, 140 basis points better than the prior-year quarter. Operating margin was 9.4%, 180 basis points worse than the prior-year quarter. Net margin was 4.4%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.27 billion. On the bottom line, the average EPS estimate is $2.29.
Next year's average estimate for revenue is $4.59 billion. The average EPS estimate is $8.73.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Alliant Techsystems is hold, with an average price target of $74.33.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.