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Huntington Ingalls (HII) Q3 Earnings Beat, Revenues Up Y/Y
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Huntington Ingalls Industries, Inc.’s (HII - Free Report) third-quarter 2020 earnings of $5.45 per share surpassed the Zacks Consensus Estimate of $4.18 by 30.4%. Moreover, the bottom line improved 45.7% from $3.74 reported in the prior-year quarter.
Total Revenues
Total revenues came in at $2,314 million, exceeding the Zacks Consensus Estimate of $2,228 million by 3.9%. The top line also improved 4.3% from $2,219 million in the year-ago quarter. The increase was driven by growth in both Newport News and Ingalls Shipbuilding divisions.
Operational Performance
Huntington Ingalls reported total operating income of $222 million compared to the operating income of $1214 million in the third quarter of 2019. The increase in operating income was mainly the result of higher operating FAS/CAS adjustments.
Huntington Ingalls received orders worth $1.6 billion during the third quarter. As a result, the company’s total backlog reached $45.3 billion as of Sep 30, 2020.
Huntington Ingalls Industries, Inc. Price, Consensus and EPS Surprise
Newport News Shipbuilding: Revenues totaled $1,358 million in this segment, up 6.6% year over year on account of higher revenues in submarine and aircraft carrier construction as well as fleet support services.
Meanwhile, the segment reported operating earnings of $79 million in the quarter, which declined 34.7% year over year. The segment’s operating margin contracted 368 basis points (bps) to 5.6%.
Ingalls Shipbuilding: Revenues in this segment totaled $675 million, up 4.3% year over year on account of higher revenues of surface combatants and the Legend-class National Security Cutter (NSC) program.
Also, operating income improved 1.6% year over year to $62 million, while operating margin contracted 24 bps to 9.2%.
Technical Solutions: Revenues in this segment slipped 1.8% to $320 million on account of lower revenues from the San Diego Shipyard due to the conclusion of several repair contracts.
The segment’s operating income soared 133.3% year over year to $21 million, whereas operating margin expanded 380 bps to 6.6%.
Financial Update
Cash and cash equivalents as of Sep 30, 2020 were $744 million, significantly up from $75 million as of Dec 31, 2019.
Long-term debt as of Sep 30, 2020, was $2,278 million compared with the 2019-end level of $1,286 million.
Cash from operating activities at the end of third-quarter 2020 grossed $491 million, up from the previous year’s $330 million.
Lockheed Martin (LMT - Free Report) reported third-quarter 2020 earnings from continuing operations of $6.25 per share, which surpassed the Zacks Consensus Estimate of $6.07 by 3%.
The Boeing Company (BA - Free Report) incurred adjusted loss of $1.39 per share for third-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of $2.33.
General Dynamics (GD - Free Report) reported third-quarter 2020 earnings from continuing operations of $2.90 per share, which beat the Zacks Consensus Estimate of $2.85 by 1.8%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Huntington Ingalls (HII) Q3 Earnings Beat, Revenues Up Y/Y
Huntington Ingalls Industries, Inc.’s (HII - Free Report) third-quarter 2020 earnings of $5.45 per share surpassed the Zacks Consensus Estimate of $4.18 by 30.4%. Moreover, the bottom line improved 45.7% from $3.74 reported in the prior-year quarter.
Total Revenues
Total revenues came in at $2,314 million, exceeding the Zacks Consensus Estimate of $2,228 million by 3.9%. The top line also improved 4.3% from $2,219 million in the year-ago quarter. The increase was driven by growth in both Newport News and Ingalls Shipbuilding divisions.
Operational Performance
Huntington Ingalls reported total operating income of $222 million compared to the operating income of $1214 million in the third quarter of 2019. The increase in operating income was mainly the result of higher operating FAS/CAS adjustments.
Huntington Ingalls received orders worth $1.6 billion during the third quarter. As a result, the company’s total backlog reached $45.3 billion as of Sep 30, 2020.
Huntington Ingalls Industries, Inc. Price, Consensus and EPS Surprise
Huntington Ingalls Industries, Inc. price-consensus-eps-surprise-chart | Huntington Ingalls Industries, Inc. Quote
Segmental Performance
Newport News Shipbuilding: Revenues totaled $1,358 million in this segment, up 6.6% year over year on account of higher revenues in submarine and aircraft carrier construction as well as fleet support services.
Meanwhile, the segment reported operating earnings of $79 million in the quarter, which declined 34.7% year over year. The segment’s operating margin contracted 368 basis points (bps) to 5.6%.
Ingalls Shipbuilding: Revenues in this segment totaled $675 million, up 4.3% year over year on account of higher revenues of surface combatants and the Legend-class National Security Cutter (NSC) program.
Also, operating income improved 1.6% year over year to $62 million, while operating margin contracted 24 bps to 9.2%.
Technical Solutions: Revenues in this segment slipped 1.8% to $320 million on account of lower revenues from the San Diego Shipyard due to the conclusion of several repair contracts.
The segment’s operating income soared 133.3% year over year to $21 million, whereas operating margin expanded 380 bps to 6.6%.
Financial Update
Cash and cash equivalents as of Sep 30, 2020 were $744 million, significantly up from $75 million as of Dec 31, 2019.
Long-term debt as of Sep 30, 2020, was $2,278 million compared with the 2019-end level of $1,286 million.
Cash from operating activities at the end of third-quarter 2020 grossed $491 million, up from the previous year’s $330 million.
Zacks Rank
Huntington Ingalls carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Lockheed Martin (LMT - Free Report) reported third-quarter 2020 earnings from continuing operations of $6.25 per share, which surpassed the Zacks Consensus Estimate of $6.07 by 3%.
The Boeing Company (BA - Free Report) incurred adjusted loss of $1.39 per share for third-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of $2.33.
General Dynamics (GD - Free Report) reported third-quarter 2020 earnings from continuing operations of $2.90 per share, which beat the Zacks Consensus Estimate of $2.85 by 1.8%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>