Barclays Maintains an 'Equalweight' on Alliant Techsystems (ATK); Weaker Quarter, Better Guidance

Barclays maintains an 'Equalweight' on Alliant Techsystems (NYSE: ATK), price target lowered from $83 to $74.

Barclays analyst says, "ATK reported Q1 FY2011 EPS of $2.13. However, after adjusting for one-time items, EPS was $1.88, below the Street estimate of $1.99 and below our estimate of $1.93 (which was at the lower end of consensus). Revenues of $1.08Bn were also shy of both consensus ($1.17Bn) and our estimate ($1.14Bn)...All in, while the Q1 revenues and earnings (ex items) were less than we anticipated, we were heartened by the increase in EPS guidance which suggests operational improvements as well as better below the line items. We have noted a continued trend among defense companies in recent quarters to offset weaker top-line with higher than expected margins; ATK was no different in this regard."

For more ratings news on Alliant Techsystems click here and for the rating history of Alliant Techsystems click here.

Shares of Alliant Techsystems closed at $61.95 yesterday.

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