We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Huntington Ingalls (HII) to Post Q4 Earnings: Beat in Store?
Read MoreHide Full Article
Huntington Ingalls Industries, Inc. (HII - Free Report) is set to report fourth-quarter and full-year 2018 results on Feb 14, before market open.
In the last reported quarter, this military shipbuilder delivered a positive earnings surprise of 27.78%. Coming to expectations for the to-be-reported quarter, rising demand for aircraft carriers are likely to boost the company’s Newport News segment.
Let’s discuss the factors influencing Huntington Ingalls’ quarterly results, in brief.
Newport News Segment – A Key Catalyst
Huntington Ingalls’ Newport News is the nation's sole designer, builder and refueler of nuclear-powered aircraft carriers. Notably, this division generates more than 50% of the company’s total revenues. Increasing geo-political tensions across the globe have prompted the U.S. government to strengthen its arsenal with aircraft carriers being a notable part of the same.
We expect the upcoming quarterly result to duly reflect solid revenue growth from the Newport News segment. This is because higher sales volumes for aircraft carriers and submarine support services have been driving this division’s top line over the past couple of quarters. The Zacks Consensus Estimate for fourth-quarter revenues at this segment is pegged at $1,184 million, reflecting a 4% improvement year over year.
Huntington Ingalls Industries, Inc. Price and EPS Surprise
A steady inflow of orders from the Pentagon has always provided an impetus to Huntington Ingalls’ quarterly results. Such order growth tends to significantly boost revenues of major defense contractors like Huntington Ingalls. In sync with this, the Zacks Consensus Estimate for fourth-quarter revenues stands at $2.06 billion, mirroring a 3.1% increase year over year.
The company’s bottom-line performance is also likely to be driven by such contract wins. Considering the consistent contract wins that Huntington Ingalls witnesses, the consensus estimate for fourth-quarter earnings is pegged at $4.45, reflecting an annual improvement of 43.1%.
What Our Quantitative Model Predicts
Huntington Ingalls possess the right combination of two ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — that increases the odds of an earnings beat in the fourth quarter.
Earnings ESP: Huntington Ingalls has an Earnings ESP of +3.71%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Recent Defense Release
TransDigm Group Incorporated (TDG - Free Report) reported first-quarter fiscal 2019 adjusted earnings of $3.85 per share, which surpassed the Zacks Consensus Estimate of $3.35 by 14.9%.
Raytheon Company reported fourth-quarter 2018 earnings per share (EPS) of $2.93 from continuing operations, outpacing the Zacks Consensus Estimate of $2.89 by 1.4%.
Spirit AeroSystems Holdings, Inc. (SPR - Free Report) reported fourth-quarter 2018 adjusted earnings of $1.85 per share, which exceeded the Zacks Consensus Estimate of $1.78 by 4%.
Zacks' Best Stock-Picking Strategy
It's hard to believe, even for us at Zacks. But from 2000-2018, while the market gained +4.8% per year, our top stock-picking strategy averaged +54.3% per year.
How has that screen done lately? From 2017-2018, it sextupled the market's +15.8% gain with a soaring +98.3% return.
Image: Bigstock
Huntington Ingalls (HII) to Post Q4 Earnings: Beat in Store?
Huntington Ingalls Industries, Inc. (HII - Free Report) is set to report fourth-quarter and full-year 2018 results on Feb 14, before market open.
In the last reported quarter, this military shipbuilder delivered a positive earnings surprise of 27.78%. Coming to expectations for the to-be-reported quarter, rising demand for aircraft carriers are likely to boost the company’s Newport News segment.
Let’s discuss the factors influencing Huntington Ingalls’ quarterly results, in brief.
Newport News Segment – A Key Catalyst
Huntington Ingalls’ Newport News is the nation's sole designer, builder and refueler of nuclear-powered aircraft carriers. Notably, this division generates more than 50% of the company’s total revenues. Increasing geo-political tensions across the globe have prompted the U.S. government to strengthen its arsenal with aircraft carriers being a notable part of the same.
We expect the upcoming quarterly result to duly reflect solid revenue growth from the Newport News segment. This is because higher sales volumes for aircraft carriers and submarine support services have been driving this division’s top line over the past couple of quarters. The Zacks Consensus Estimate for fourth-quarter revenues at this segment is pegged at $1,184 million, reflecting a 4% improvement year over year.
Huntington Ingalls Industries, Inc. Price and EPS Surprise
Huntington Ingalls Industries, Inc. Price and EPS Surprise | Huntington Ingalls Industries, Inc. Quote
Solid Order Growth
A steady inflow of orders from the Pentagon has always provided an impetus to Huntington Ingalls’ quarterly results. Such order growth tends to significantly boost revenues of major defense contractors like Huntington Ingalls. In sync with this, the Zacks Consensus Estimate for fourth-quarter revenues stands at $2.06 billion, mirroring a 3.1% increase year over year.
The company’s bottom-line performance is also likely to be driven by such contract wins. Considering the consistent contract wins that Huntington Ingalls witnesses, the consensus estimate for fourth-quarter earnings is pegged at $4.45, reflecting an annual improvement of 43.1%.
What Our Quantitative Model Predicts
Huntington Ingalls possess the right combination of two ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — that increases the odds of an earnings beat in the fourth quarter.
Earnings ESP: Huntington Ingalls has an Earnings ESP of +3.71%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Recent Defense Release
TransDigm Group Incorporated (TDG - Free Report) reported first-quarter fiscal 2019 adjusted earnings of $3.85 per share, which surpassed the Zacks Consensus Estimate of $3.35 by 14.9%.
Raytheon Company reported fourth-quarter 2018 earnings per share (EPS) of $2.93 from continuing operations, outpacing the Zacks Consensus Estimate of $2.89 by 1.4%.
Spirit AeroSystems Holdings, Inc. (SPR - Free Report) reported fourth-quarter 2018 adjusted earnings of $1.85 per share, which exceeded the Zacks Consensus Estimate of $1.78 by 4%.
Zacks' Best Stock-Picking Strategy
It's hard to believe, even for us at Zacks. But from 2000-2018, while the market gained +4.8% per year, our top stock-picking strategy averaged +54.3% per year.
How has that screen done lately? From 2017-2018, it sextupled the market's +15.8% gain with a soaring +98.3% return.
Free – See the Stocks It Turned Up for Today >>