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Huntington Ingalls (HII) Down 5.9% Since Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Huntington Ingalls Industries, Inc. (HII - Free Report) . Shares have lost about 5.9 % in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Huntington Ingalls Tops Q3 Earnings, Sales Up Y/Y
Huntington Ingalls’ third-quarter 2017 earnings of $3.27 per share surpassed the Zacks Consensus Estimate of $2.78 by 17.6%.
Reported earnings improved 44.1% from $2.27 per share in the year-ago quarter owing to a rise in the top line and operating income.
Total Revenues
Total revenues in the third quarter were $1.86 billion, ahead of the Zacks Consensus Estimate of $1.78 billion by 4.5%. The top line rose 10.7% from the year-ago figure of $1.68 billion. The upside was driven by improved sales growth in all the business divisions of the company.
Segment Details
Newport News Shipbuilding: Segment revenues were $1,053 million, up 7.7% year over year due to higher revenues from aircraft carriers, submarines and naval nuclear support services. Operating income improved 41.2% to $96 million.
Ingalls Shipbuilding: Segment revenues were $593 million, up 2.8% year over year on higher revenues in amphibious assault ships. Operating income at the segment improved 12.1% to $74 million.
Technical Solutions: Segment revenues were $241 million, up 56.5% year over year primarily, due to higher volume in integrated mission solutions services. This, in turn, was due to the acquisition of Camber in the fourth quarter last year. Higher volumes in fleet support also boosted this segment. Operating income at the segment was $22 million, up 267%.
Backlog
The company received new orders worth $3 billion during the reported quarter, as a result of which, its total backlog reached $23 billion as of Sep 30, 2017.
Financial Update
Cash and cash equivalents as of Sep 30, 2017, were $499 million, down from $720 million as of Dec 31, 2016.
Long-term debt, as of Sep 30, 2017, was $1,282 million compared with the 2016-end level of $1,278 million.
Cash from operating activities in third-quarter 2017 was $380 million, compared with $477 million in third-quarter 2016.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last month as none of them issued any earnings estimate revisions.
Huntington Ingalls Industries, Inc. Price and Consensus
Currently, Huntington Ingalls' stock has a subpar Growth Score of D, however its Momentum is doing a bit better with a C.The stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for value investors than momentum investors.
Outlook
The stock has a Zacks Rank #2 (Buy). We are looking for an above average return from the stock in the next few months
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Huntington Ingalls (HII) Down 5.9% Since Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Huntington Ingalls Industries, Inc. (HII - Free Report) . Shares have lost about 5.9 % in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Huntington Ingalls Tops Q3 Earnings, Sales Up Y/Y
Huntington Ingalls’ third-quarter 2017 earnings of $3.27 per share surpassed the Zacks Consensus Estimate of $2.78 by 17.6%.
Reported earnings improved 44.1% from $2.27 per share in the year-ago quarter owing to a rise in the top line and operating income.
Total Revenues
Total revenues in the third quarter were $1.86 billion, ahead of the Zacks Consensus Estimate of $1.78 billion by 4.5%. The top line rose 10.7% from the year-ago figure of $1.68 billion. The upside was driven by improved sales growth in all the business divisions of the company.
Segment Details
Newport News Shipbuilding: Segment revenues were $1,053 million, up 7.7% year over year due to higher revenues from aircraft carriers, submarines and naval nuclear support services. Operating income improved 41.2% to $96 million.
Ingalls Shipbuilding: Segment revenues were $593 million, up 2.8% year over year on higher revenues in amphibious assault ships. Operating income at the segment improved 12.1% to $74 million.
Technical Solutions: Segment revenues were $241 million, up 56.5% year over year primarily, due to higher volume in integrated mission solutions services. This, in turn, was due to the acquisition of Camber in the fourth quarter last year. Higher volumes in fleet support also boosted this segment. Operating income at the segment was $22 million, up 267%.
Backlog
The company received new orders worth $3 billion during the reported quarter, as a result of which, its total backlog reached $23 billion as of Sep 30, 2017.
Financial Update
Cash and cash equivalents as of Sep 30, 2017, were $499 million, down from $720 million as of Dec 31, 2016.
Long-term debt, as of Sep 30, 2017, was $1,282 million compared with the 2016-end level of $1,278 million.
Cash from operating activities in third-quarter 2017 was $380 million, compared with $477 million in third-quarter 2016.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last month as none of them issued any earnings estimate revisions.
Huntington Ingalls Industries, Inc. Price and Consensus
Huntington Ingalls Industries, Inc. Price and Consensus | Huntington Ingalls Industries, Inc. Quote
VGM Scores
Currently, Huntington Ingalls' stock has a subpar Growth Score of D, however its Momentum is doing a bit better with a C.The stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for value investors than momentum investors.
Outlook
The stock has a Zacks Rank #2 (Buy). We are looking for an above average return from the stock in the next few months