Alliant Q3 Earnings Rise; Lifts Outlook For 2014; Ups Quarterly Dividend

(RTTNews) - Alliant Techsystems Inc. (ATK), a provider of of aerospace, defense, and commercial products to the U.S. government, allied nations, and prime contractors, Thursday reported a rise in earnings for the third quarter. The company also raised its earnings and sales guidance for the year 2014. In addition, the company increased its quarterly dividend by 23 percent.

Earnings attributable to the company increased to $80.29 million from $63.17 million a year ago. Earnings per share rose to $2.46 from $1.93 a year earlier.

Excluding certain items, earnings advanced to $93.32 million, or $2.87 per share, from $60.58 million, or $1.84 per share, a year ago.

On average, 12 analysts polled by Thomson-Reuters had estimated the company's earnings to be $2.02 for the quarter. Analysts' estimates typically exclude one-time items.

For the 3-month period, sales rose to $1.208 billion from $1.056 billion a year earlier. Sporting Group revenues increased 78 percent to $524 million from $294 million in the corresponding period last year. Sales for the Defense Group declined by 10 percent to $455 million from $508 million a year ago. The decrease in Defense Group sales was primarily due to reduced sales in the Armament Systems and Small Caliber Systems divisions and impact from federal budget reductions.

Looking ahead, ATK raised its 2014 sales guidance to a range of $4.73 billion - $4.78 billion from the previous view of $4.68 billion - $4.73 billion. The revision mainly reflects improved operating performance in the company's Sporting Group division.

Based on the improved sales and a lower expected tax rate, the company raised its 2014 earnings per share outlook to $9.50 - $9.80 from $9.10 - $9.40 guided earlier.

Analysts expect revenue of $4.71 billion and earnings per share of $9.39 for the year 2014.

The Board also recommended a 23 percent increase in quarterly cash dividend to $0.32 per share from $0.26 per share. The dividend will be payable on March 27 to stockholders of record as of March 4.