Orbital ATK (OA) Chips in ULA Atlas V and MUOS-4 Launch

On Sep 2, 2015, Orbital ATK, Inc. OA announced that it contributed to the United Launch Alliance ("ULA") Atlas V launch from Cape Canaveral Air Force Station, FL. Orbital ATK supplied products on the fourth satellite in the U.S. Navy's Mobile User Objective System ("MUOS"), designated as MUOS-4, and for the ULA Atlas V launch vehicle. This is the 56th Atlas V launch in which Orbital ATK has provided its composite structures.

Lockheed Martin Corporation's LMT Space Systems segment is the prime contractor for the MUOS constellation. MUOS is the next generation in narrowband tactical satellite communications systems that will provide mobile warfighters with improved and secure communications.

Dulles, VA-based Orbital ATK produced three components for the ULA Atlas V vehicle using advanced fiber placement manufacturing and automated inspection techniques. The products include a 10-foot diameter composite heat shield, the Centaur Interstage Adapter and the boattail. The structures were manufactured by the company at its facility in Mississippi.

Orbital ATK provided multiple components and structures, for the MUOS-4 satellite, from its facilities in California, Utah and Maryland. MUOS-1, MUOS-2 and MUOS-3 were launched in 2012, 2013 and 2015 respectively and the MUOS-4 is the fourth of the five satellites planned in the Navy's MUOS constellation.

Last month, Orbital ATK signed a contract to supply propellant and pressurant tanks for Lockheed Martin's A2100 satellite program. The A2100 satellites offer global telecommunication applications for government, commercial and civil customers (read: Orbital ATK/Lockheed Martin Sign Deal for A2100 Program).

Orbital ATK formed from the 2014 merger of Orbital Sciences Corp. and the Aerospace and Defense groups of Alliant Techsystems Inc. boasts a wide range of space, defense and aviation systems. Consistent order wins have encouraged the company to raise its 2015 earnings guidance to $4.60–$4.80 per share (from $4.40-$4.60 earlier) on the second quarter earnings call. Earlier this year, Orbital ATK provided an impressive three-year outlook for Space Systems in a band of 7–9% annually through 2017.

Zacks Rank

Orbital ATK currently has a Zacks Rank #2 (Buy). Other stocks worth considering in the aerospace and defense space include LMI Aerospace Inc. LMIA, sporting a Zacks Rank #1 (Strong Buy) and Spirit AeroSystems Holdings, Inc. SPR, holding a Zacks Rank #2.

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