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What Awaits Huntington Ingalls (HII) This Earnings Season?

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Huntington Ingalls Industries, Inc. (HII - Free Report) is slated to report first-quarter 2022 results on May 5 before market open.

Huntington Ingalls has a four-quarter earnings surprise of 22.22%, on average. The company came up with a four-quarter average negative earnings surprise of 22.22%.

Factors to Note

Lower volumes on NSE and amphibious assault ships programs might have unfavorably impacted the company’s Ingalls segment revenues in the soon-to-be-reported quarter.  

On a brighter note, growth from the Virginia class and Columbia class submarine programs as well as revenues for carrier construction and overhaul is projected to have boosted the Newport News unit’s Q1 performance.

Further, acquisition benefits from the buyout of Alion are expected to have boosted sales growth of the Technical Solutions segment.

However, the timing of the shipbuilding program milestones and the normal seasonality for Technical Solutions might have had some adverse impacts on the company’s Q1 operating results. Also, the divestiture of its oil and gas business might have adversely impacted the shipbuilder’s Q1 performance. The impact of the COVID-19 Omicron variant and the challenging labor market might also hurt HII’s results.

First-Quarter Estimates

The Zacks Consensus Estimate for first-quarter sales is pegged at $2.53 billion, indicating an improvement of 11.3% from the prior-year reported figure.

The Zacks Consensus Estimate for first-quarter earnings is pegged at $3.31 per share, indicating a decline of 10.1% from the prior-year reported figure.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for HII this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.

Huntington Ingalls has an Earnings ESP of -3.83% and a Zacks Rank #2. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Stocks to Consider

Here are three defense players you may want to consider as they have the right combination of elements to post an earnings beat this season:

Moog (MOG.A - Free Report) has an Earnings ESP of +2.84% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MOG.A’s first-quarter sales and earnings is pegged at $758.8 million and $1.41 per share, respectively. The company came up with an earnings surprise of 16.41% in the last reported quarter.

CAE (CAE - Free Report) has an Earnings ESP of +11.11% and a Zacks Rank #3. CAE delivered a four-quarter average earnings surprise of 0.72%.

The long-term earnings growth rate of CAE is pegged at 8%. The Zacks Consensus Estimate for CAE’s first-quarter earnings is pegged at 18 cents per share.

Spirit Aerosystems (SPR - Free Report) has an Earnings ESP of +9.34% and a Zacks Rank #3. It boasts a long-term earnings growth rate of 8.5%.

The Zacks Consensus Estimate for SPR’s first-quarter loss indicates an improvement from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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