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Huntington Ingalls (HII) Misses Q1 Earnings, Sales Estimates

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The largest military shipbuilder in the U.S., Huntington Ingalls Industries, Inc. (HII - Free Report) is the prime industrial employer in Virginia. Huntington Ingalls, originally an affiliate of Northrop Grumman Corp., was spun off in Mar 2011. It operates major shipyards in Louisiana, Mississippi and Virginia.

Huntington Ingalls primarily deals with the supply of nuclear and non-nuclear ships to the U.S. Navy and Coast Guards. The company also provides manufacturing, engineering and management services to the commercial and non-commercial oil, gas and energy markets.

Estimate Trend & Surprise History

Coming to the earnings surprise, Huntington Ingalls has surpassed the Zacks Consensus Estimate in three of the last four quarters with an average positive surprise of 19.85%. Investors should also note the Zacks Consensus Estimate for the first quarter of 2017 moved north in the last 60 days by 0.7%.

Zacks Rank

Currently, the company has a Zacks Rank #2 (Buy), but that could definitely change following the company’s earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings Miss: Huntington Ingalls missed on first quarter earnings. Our consensus called for EPS of $2.72, and the company reported adjusted EPS of $1.87.

Huntington Ingalls Industries, Inc. Price and EPS Surprise

Huntington Ingalls Industries, Inc. Price and EPS Surprise | Huntington Ingalls Industries, Inc. Quote
 

Revenue Miss: The company posted revenues of $1,724 million, lagging behind the consensus estimates of $1,815 million.

 

Key Developments to Note

New business contracts for the quarter were approximately $600 million for Huntington Ingalls. Total backlog for the quarter amounted to $20 billion.

Stock Price: In the pre-market trading session, Huntington Ingalls’ first quarter results made no significant impact on its share price. Yet, it would be interesting to see how the market reacts to the earnings release during the trading session today.

Check back later for our full write up on this HII earnings report later!

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