Sizable Restatement Coming From Orbital ATK — Market Talk

6:32 ET – Orbital ATK (OA) reported an unexpected 2Q revenue decline while saying its quarterly filing with the SEC will be delayed as the satellite company has to restate 2 years of results amid “misstatements” related to a $2.3B Army contract. OA says a review found the errors, which the company doesn’t go into specifics on, “when corrected indicate that the contract’s estimated costs were in excess of the contracted revenues of $2.3 billion, necessitating a forward-loss charge for the 10-year term of the contract.” That means previous after-tax earnings will be cut by some $250-280M while previously stated revenue will drop $100-150M. “The company is continuing to review and assess,” it adds. OA, which also cuts 2016 revenue guidance amid the 2Q decline, is inactive premarket. (kevin.kingsbury[a]; [a]kevinkingsbury)

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