Orbital ATK Inc (NYSE:OA) shares are plummeting Wednesday as the company announced it is pushing back the release of its quarterly earnings report.
The aerospace components manufacturer revealed that there has been an accounting problem associated with the company’s contract with the U.S. Army that will provide the government agency with small caliber ammunition to its Lake City Army Ammunition Plant in Missouri.
The $2.3 billion deal will cause Orbital to revise its financial results for its second quarter, as well as a number of other periods. These include the fiscal year ended March 31, 2015, the last nine months of 2015, as well as the its spring quarter, which ended April 3, 2016.
The company released a preliminary quarterly report that includes revenue of $1.052 billion, marking a 2.3% decline year-over-year.
Orbital also disclosed that it tested a rocket back in May that has a new configuration with two Russian RD-181 engines. The test took place over a 30-second span, and all went well.
The new version of the rocket — equipped with a freight space vessel — will be tested a month later than originally planned. Now, the test will occur late next month.
The first flight of the new-version Antares rocket carrying the Cygnus freight-filled canister has been delayed by a month, to late September.
The company’s Space Systems division — containing a commercial satellite that sends cargo and supplies to the International Space Station — netted $265 million in revenue for the quarter ended June 30. This figures marks a year-over-year loss of 10.8%.
Orbital is known for its work with air and space engineering, manufacturing propulsion systems and satellite equipment. Additionally, the company helps the U.S. government’s defense industry with aviation components, ammunition and more.
OA stock fell 23% Wednesday afternoon.
