OA - Orbital ATK - Company Profile
Orbital ATK, Inc. develops and produces aerospace, defense, and aviation-related products to the U.S. Government, allied nations, prime contractors, and other customers in the United States and internationally. It operates through three segments: Flight Systems Group, Defense Systems Group, and Space Systems Group. The Flight Systems Group segment develops launch vehicles that are used as small-and medium-class space launch vehicles to place satellites into Earth orbit and escape trajectories; interceptor and target vehicles for missile defense systems; suborbital launch vehicles that place payloads into various high-altitude trajectories; rocket propulsion systems for human and cargo launch vehicles; strategic missiles; missile defense interceptors and target vehicles; composite structures for military and commercial aircraft and launch structures markets; and illuminating flares and aircraft countermeasures. The Defense Systems Group segment develops and produces military ammunition; small-caliber commercial ammunition; propulsion systems for tactical missiles and missile defense applications; strike weapons; precision weapons and munitions; high-performance gun systems; aircraft survivability systems; fuzes and warheads; propellant and energetic materials; special mission aircraft; airborne missile warning systems; and defense electronics. The Space Systems Group segment offers small-and medium-class satellites that are used to enable global and regional communications and broadcasting; conduct space-related scientific research; and perform other activities related to national security. This segment also provides human-rated space systems for Earth-orbit and deep-space exploration, including re-supplying the international space station; and spacecraft components and subsystems, as well as specialized engineering and operations services.
Company description from FinViz.com
Orbital is a jack of all trades. If you read the description above, there is very little in defense and aerospace that they do not do. With all the attention on the defense sector, all the defense stocks are soaring. Orbital is the only one with a cheap enough stock price that you can buy that also has a decent chart.
They reported earnings of $1.56 compared to estimates for $1.45. Revenue of $1.12 billion beat estimates for $1.11 billion. They guided for the full year for earnings of $5.95-$6.25 per share and revenue of $4.60-$4.65 billion. That was up from $5.80-$6.20 and $4.55-$4.625 billion.
Revenue and earnings were hampered by a slowdown at the Lake City ammunition plant in Apr/May after an accident that halted assembly lines. Everything is back to full speed.
Order backlogs rose 4% to $15.4 billion. On August 10th, the company approved a quarterly cash dividend of 32 cents payable Sept 21st to holders on Sept 6th.
Expected earnings Nov 2nd.
They do not have LEAPS so I am recommending a February call.
Buy Feb $110 call, currently $4.90, initial stop loss $100.85.