Termination Of Constellation Program To Affect ATK Sales In H2 2011

Analysts at Cowen & Co maintain their "neutral" rating on Alliant Techsystems (NYSE: ATK).

Cowen & Co believes that the consensus revenues and EPS for Alliant Techsystems will be lowered for 2H10, as NASA’s F11 budget request seeks to terminate the “Constellation” program and retire the Space Shuttle after five more flights.

“We still expect ATK’s F10E Constellation sales in the $400-430MM range since ATK’s FY ends in March 2010 and government FY10 funding is secure (through Sept 2010) barring a stop-work order,” the analysts mention. “If the F11 budget request is enacted as proposed, ATK’s consensus H2:F11 sales/EPS face would drop as Shuttle (est. $300-320MM of annual sales) and Constellation would fade simultaneously,” the analysts add.

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