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Huntington Ingalls (HII) Q4 Earnings Top, Revenues Up Y/Y
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Huntington Ingalls Industries, Inc.’s (HII - Free Report) fourth-quarter 2018 earnings of $4.94 per share surpassed the Zacks Consensus Estimate of $4.45 by 11%. The reported figure also improved a massive 250.4% from $1.41 a year ago on solid revenue growth.
For 2018, the company reported earnings of $19.09 per share, which outpaced the Zacks Consensus Estimate of $18.84 by 1.3%. The bottom line also improved a solid 82.5% from $10.46 registered a year ago.
Total Revenues
Total revenues came in at $2.20 billion exceeding the Zacks Consensus Estimate of $2.06 billion by 6.9%. The top line also rose 10.2% from $2 billion registered in the year-ago quarter. The upside can be attributed to higher sales volume at all the three business divisions of the company.
In 2018, the company generated revenues of $8.18 billion, which once again outpaced the Zacks Consensus Estimate of $8.03 billion by 1.9% and improved 9.9% from $7.44 billion registered in the prior year.
Huntington Ingalls Industries, Inc. Price, Consensus and EPS Surprise
Newport News Shipbuilding: Revenues totaled $1,278 million at this segment, up 12.2% year over year backed by higher revenues in naval nuclear support services and aircraft carriers. Meanwhile, operating income declined 46.2% to $57 million due to poor performance in the VCS program, primarily Delaware (SSN 791) and Montana (SSN 794), and higher risk retirement on the RCOH program during fourth-quarter 2017.
Ingalls Shipbuilding: Revenues at this segment came in at $699 million, up 9.6% year over year on account of higher revenues in amphibious assault ships and surface combatants. Also, operating income improved 12% to $84 million driven by higher volumes and higher risk retirement for the DDG and NSC programs.
Technical Solutions: Revenues at this segment summed $267 million, up 10.3% year over year. The upside was driven by increased revenues from oil and gas services and mission driven innovative solutions. Operating income totaled $7 million compared with $8 million in the year-ago quarter.
Backlog
Huntington Ingalls received new orders worth $3.3 billion in the fourth quarter. As a result, the company’s total backlog reached $23 billion as of Dec 31, 2018.
Financial Update
Cash and cash equivalents as of Dec 31, 2018, were $240 million, significantly down from $701 million as of Dec 31, 2017.
Long-term debt, as of Dec 31, 2018, was $1,283 million compared with the 2017-end level of $1,279 million.
Cash from operating activities, at the end of 2018, grossed $914 million compared with $814 million at the end of 2017.
Spirit AeroSystems Holdings (SPR - Free Report) reported fourth-quarter 2018 adjusted earnings of $1.85 per share, which surpassed the Zacks Consensus Estimate of $1.78 by 4%.
Raytheon Company reported fourth-quarter 2018 earnings per share (EPS) of $2.93 from continuing operations, which outpaced the Zacks Consensus Estimate of $2.89 by 1.4%. The bottom-line figure also improved a massive 117% from the year-ago quarter’s figure of $1.35.
The Boeing Company (BA - Free Report) reported adjusted earnings of $5.48 per share for fourth-quarter 2018, which exceeded the Zacks Consensus Estimate of $4.52 by 21.2%. The bottom line reflected an improvement of 8% from $5.07 registered in the year-ago quarter.
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Huntington Ingalls (HII) Q4 Earnings Top, Revenues Up Y/Y
Huntington Ingalls Industries, Inc.’s (HII - Free Report) fourth-quarter 2018 earnings of $4.94 per share surpassed the Zacks Consensus Estimate of $4.45 by 11%. The reported figure also improved a massive 250.4% from $1.41 a year ago on solid revenue growth.
For 2018, the company reported earnings of $19.09 per share, which outpaced the Zacks Consensus Estimate of $18.84 by 1.3%. The bottom line also improved a solid 82.5% from $10.46 registered a year ago.
Total Revenues
Total revenues came in at $2.20 billion exceeding the Zacks Consensus Estimate of $2.06 billion by 6.9%. The top line also rose 10.2% from $2 billion registered in the year-ago quarter. The upside can be attributed to higher sales volume at all the three business divisions of the company.
In 2018, the company generated revenues of $8.18 billion, which once again outpaced the Zacks Consensus Estimate of $8.03 billion by 1.9% and improved 9.9% from $7.44 billion registered in the prior year.
Huntington Ingalls Industries, Inc. Price, Consensus and EPS Surprise
Huntington Ingalls Industries, Inc. Price, Consensus and EPS Surprise | Huntington Ingalls Industries, Inc. Quote
Segment Details
Newport News Shipbuilding: Revenues totaled $1,278 million at this segment, up 12.2% year over year backed by higher revenues in naval nuclear support services and aircraft carriers. Meanwhile, operating income declined 46.2% to $57 million due to poor performance in the VCS program, primarily Delaware (SSN 791) and Montana (SSN 794), and higher risk retirement on the RCOH program during fourth-quarter 2017.
Ingalls Shipbuilding: Revenues at this segment came in at $699 million, up 9.6% year over year on account of higher revenues in amphibious assault ships and surface combatants. Also, operating income improved 12% to $84 million driven by higher volumes and higher risk retirement for the DDG and NSC programs.
Technical Solutions: Revenues at this segment summed $267 million, up 10.3% year over year. The upside was driven by increased revenues from oil and gas services and mission driven innovative solutions. Operating income totaled $7 million compared with $8 million in the year-ago quarter.
Backlog
Huntington Ingalls received new orders worth $3.3 billion in the fourth quarter. As a result, the company’s total backlog reached $23 billion as of Dec 31, 2018.
Financial Update
Cash and cash equivalents as of Dec 31, 2018, were $240 million, significantly down from $701 million as of Dec 31, 2017.
Long-term debt, as of Dec 31, 2018, was $1,283 million compared with the 2017-end level of $1,279 million.
Cash from operating activities, at the end of 2018, grossed $914 million compared with $814 million at the end of 2017.
Zacks Rank
Huntington Ingalls has a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Spirit AeroSystems Holdings (SPR - Free Report) reported fourth-quarter 2018 adjusted earnings of $1.85 per share, which surpassed the Zacks Consensus Estimate of $1.78 by 4%.
Raytheon Company reported fourth-quarter 2018 earnings per share (EPS) of $2.93 from continuing operations, which outpaced the Zacks Consensus Estimate of $2.89 by 1.4%. The bottom-line figure also improved a massive 117% from the year-ago quarter’s figure of $1.35.
The Boeing Company (BA - Free Report) reported adjusted earnings of $5.48 per share for fourth-quarter 2018, which exceeded the Zacks Consensus Estimate of $4.52 by 21.2%. The bottom line reflected an improvement of 8% from $5.07 registered in the year-ago quarter.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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