Orbital Sciences Corp. [ORB] yesterday said its first quarter earnings rose sharply on margin improvements across its business segments despite sales that remained relatively level with a year ago.
Net income jumped 50 percent to $19.6 million, 33 cents earnings per share (EPS), from $13 million (22 cents EPS) a year ago, a dime above consensus estimates. Operating income increased in all three segments as Orbital credited the improvement to better profit rates on target and space launch vehicles, a favorable profit adjustment stemming from the recent successfully deployment of two satellites, a favorable contract adjustment and resolution of a customer claim.
The company also said lower interest expense due to a recent restructuring of its long-term debt boosted earnings.
Sales were off a percent in the quarter to $334.8 million from $338 million a year ago as declines in the Satellite and Space Systems, and to a lesser extent in the Advanced Space Programs segments, more than offset an increase in the Launch Vehicles segment. The company experienced lower activity on communications satellite contracts and higher activity on target launch vehicles and missile defense interceptors.
Free cash was a $34.2 million outflow in the quarter.