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Huntington Ingalls (HII) Closes Acquisition of Camber Corp
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Huntington Ingalls Industries, Inc. (HII - Free Report) has completed the previously announced acquisition of Camber Corporation, a government services company based in Huntsville, AL. The transaction was valued at $380.0 million, including tax benefits of approximately $25 million that depend on customary closing adjustments.
Post acquisition, Huntington Ingalls restructured its service businesses and created a new reportable segment, HII Technical Solutions, comprising Camber and its subsidiaries − AMSEC, Continental Maritime of San Diego, Newport News Industrial, SN3, Undersea Solutions Group and Universal Pegasus International.
Acquisition Synergies
Camber is a pure-play provider of sophisticated mission-based and information technology solutions. The acquisition is intended to diversify Huntington Ingalls’ revenue stream and add new information technology work with the U.S. defense, intelligence and civilian agencies.
The transaction is expected to boost Huntington Ingalls’ bottom line and cash flow in the first full year, and the company will finance the deal with cash available.
Further, the newly formed segment, HII Technical Solutions, will improve strategic and operational alignment among the services businesses, develop opportunities for growth and enhance performance transparency.
In addition, Camber’s market position and capabilities in growth areas like agile software and network engineering, modeling simulation and training, unmanned systems, systems engineering, and data analytics will enhance Huntington Ingalls’ existing service offerings and customer base.
Price Movement
Huntington Ingalls has largely outperformed the Zacks Categorized Aerospace-Defense Industry over the last 12 months. Share price of Huntington Ingalls gained 36.5% compared with the industry’s 11.2% gain.
The primary reason for this is a strong outlook for the shipbuilding business due to the enacted fiscal 2016 budget and fiscal 2017 proposal. Huntington Ingalls’ shipbuilding programs that were funded by the 2016 budget comprise the construction of LPD-28 and the ninth NSC, as well as the expedited development of LX(R) by two years.
Further, Huntington Ingalls is expected to benefit from long-term revenue stability.
Zacks Rank & Key Picks
Huntington Ingalls carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the same space include Engility Holdings, Inc. , Northrop Grumman Corporation (NOC - Free Report) and Leidos Holdings, Inc. (LDOS - Free Report) .
Engility Holdings has seen six upward estimate revisions for 2016 over the last 60 days. Over the last 30 days, its estimates increased 13.4% from $1.42 to $1.61. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Northrop Grumman, another Zacks Rank #1 stock, has seen eight upward estimate revisions for 2016 over the last 60 days. Over this period, its estimates increased 6% from $11.07 to $11.74.
Leidos Holdings has seen three upward estimate revisions for 2016 over the last 60 days. The stock carries a Zacks Rank #2 (Buy).Over the past 30 days, its estimates increased 10.6% from $3.22 to $3.56.
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Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
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Huntington Ingalls (HII) Closes Acquisition of Camber Corp
Huntington Ingalls Industries, Inc. (HII - Free Report) has completed the previously announced acquisition of Camber Corporation, a government services company based in Huntsville, AL. The transaction was valued at $380.0 million, including tax benefits of approximately $25 million that depend on customary closing adjustments.
Post acquisition, Huntington Ingalls restructured its service businesses and created a new reportable segment, HII Technical Solutions, comprising Camber and its subsidiaries − AMSEC, Continental Maritime of San Diego, Newport News Industrial, SN3, Undersea Solutions Group and Universal Pegasus International.
Acquisition Synergies
Camber is a pure-play provider of sophisticated mission-based and information technology solutions. The acquisition is intended to diversify Huntington Ingalls’ revenue stream and add new information technology work with the U.S. defense, intelligence and civilian agencies.
The transaction is expected to boost Huntington Ingalls’ bottom line and cash flow in the first full year, and the company will finance the deal with cash available.
Further, the newly formed segment, HII Technical Solutions, will improve strategic and operational alignment among the services businesses, develop opportunities for growth and enhance performance transparency.
In addition, Camber’s market position and capabilities in growth areas like agile software and network engineering, modeling simulation and training, unmanned systems, systems engineering, and data analytics will enhance Huntington Ingalls’ existing service offerings and customer base.
Price Movement
Huntington Ingalls has largely outperformed the Zacks Categorized Aerospace-Defense Industry over the last 12 months. Share price of Huntington Ingalls gained 36.5% compared with the industry’s 11.2% gain.
The primary reason for this is a strong outlook for the shipbuilding business due to the enacted fiscal 2016 budget and fiscal 2017 proposal. Huntington Ingalls’ shipbuilding programs that were funded by the 2016 budget comprise the construction of LPD-28 and the ninth NSC, as well as the expedited development of LX(R) by two years.
Further, Huntington Ingalls is expected to benefit from long-term revenue stability.
Zacks Rank & Key Picks
Huntington Ingalls carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the same space include Engility Holdings, Inc. , Northrop Grumman Corporation (NOC - Free Report) and Leidos Holdings, Inc. (LDOS - Free Report) .
Engility Holdings has seen six upward estimate revisions for 2016 over the last 60 days. Over the last 30 days, its estimates increased 13.4% from $1.42 to $1.61. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Northrop Grumman, another Zacks Rank #1 stock, has seen eight upward estimate revisions for 2016 over the last 60 days. Over this period, its estimates increased 6% from $11.07 to $11.74.
Leidos Holdings has seen three upward estimate revisions for 2016 over the last 60 days. The stock carries a Zacks Rank #2 (Buy).Over the past 30 days, its estimates increased 10.6% from $3.22 to $3.56.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>