Orbital Sciences [ORB] last Thursday reported a decline in second quarter sales but an increase in net income due mainly to lower interest expense and to a lesser degree higher operating income.
 |
| Orbital’s Taurus space launch vehicle. Photo: Orbital Sciences Corp. |
Sales fell 10 percent to $333.1 million in the quarter from $371.3 million a year ago due to declines in its satellites and space systems and advanced space programs segments. Orbital’s launch vehicles segment posted higher sales.
Net income rose 12 percent to $16.3 million, 27 cents earnings per share (EPS), from $14.6 million (25 cents EPS), aided by a $1.8 million decline in interest expense. Operating income in the quarter was up $200,000, or 1 percent, due to a hit to earnings a year ago from corporate expenses related to a potential acquisition that was not made. Excluding the year-ago corporate expenses, operating income was down in the second quarter.
Free cash flow in the quarter was $6.9 million and bookings were $845 million. Total backlog at the end of the quarter stood at $5.4 billion.
Due to delays in expected awards of new commercial communications satellites, Orbital lowered its sales guidance for the year to about $1.4 billion versus the previous outlook of between $1.4 billion and $1.5 billion. Projected earnings were increased by a nickel to between $1.05 and $1.15 due to better than expected margins in the satellites and space systems, and launch vehicles segments.