By The Associated Press
Tuesday, October 27, 2009
Orbital Sciences Corp., which makes small rockets, satellites and other space equipment, said Tuesday its third-quarter profit fell nearly 18 percent, but still handily beat Wall Street's estimates.
The Dulles, Va., company reported net income of $9.4 million, or 16 cents per share, down from $11.4 million, or 19 cents per share, in the prior-year period.
Revenue slipped less than 1 percent to $277.1 million from $278.6 million. Revenue fell primarily due to fewer contracts with its communications satellite and missile defense programs, Orbital Sciences said.
Analysts surveyed by Thomson Reuters, on average, expected earnings of 10 cents per share on revenue of $269.5 million.
Operating income was reduced in the third quarter by $7 million in unrecovered research and development expenses. Orbital Sciences' research and development expenses can generally be recovered under contracts with the federal government.
The company also received a total of $365 million in new contracts, which helped to lift the company's financial 2010 outlook.
Orbital Sciences reiterated its outlook for 2009 income of 55 cents to 60 cents per share with a revenue between $1.11 billion and $1.14 billion. That's in line with Wall Street's forecast of 60 cents per share on revenue of $1.12 billion.
The company also projected 2010 earnings of 70 cents to 80 cents per share on revenue between $1.18 billion to $1.23 billion. Analysts forecast profit of 94 cents per share on revenue of $1.23 billion.
In afternoon trading, shares fell 64 cents, or 4.5 percent, to $13.50. The stock has ranged from $11.60 to $20.92 over the past year.