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Huntington Ingalls Industries, Inc.’s (HII - Free Report) first-quarter 2024 earnings of $3.87 per share increased a solid 19.8% from $3.23 reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of $3.50 by 10.6%.
Total Revenues
Revenues for the quarter totaled $2.81 billion, which beat the Zacks Consensus Estimate of $2.80 billion by 0.2%. The top line also increased 4.9% from $2.67 billion recorded in the year-ago quarter, driven primarily by growth at its Mission Technologies business segment.
Operational Performance
Huntington Ingalls reported segmental operating income of $170 million compared with $156 million in the first quarter of 2023. The segmental operating margin expanded 30 basis points from the prior-year quarter’s figure to 6.1%.
Huntington Ingalls Industries, Inc. Price, Consensus and EPS Surprise
HII received orders worth $3.1 billion in the reported quarter. As a result, its total backlog reached $48.4 billion as of Mar 31, 2024.
Segmental Performance
Newport News Shipbuilding: Revenues totaled $1.43 billion in this segment, down 4.8% year over year due to lower volumes from aircraft carriers and the Virginia class submarine program.
The segment reported operating earnings of $82 million, down 2.4% year over year due to lower volumes.
Ingalls Shipbuilding: Revenues in this segment totaled $655 million, up 13.5% year over year, primarily driven by higher volumes from amphibious assault ships and surface combatants.
The segment’s operating income of $60 million increased 9.1% year over year, partly driven by higher volumes.
Mission Technologies: Revenues in this segment totaled $750 million, up 20.2% year over year. The upside was primarily driven by higher volumes from C5ISR and cyber, electronic warfare and space.
The operating income soared 64.7% year over year to $28 million, driven by higher volumes.
Financial Update
The company’s cash and cash equivalents as of Mar 31, 2024, totaled $10 million, significantly down from $430 million as of Dec 31, 2023.
The long-term debt as of Mar 31, 2024, totaled $2.24 billion compared with the 2023-end level of $2.21 billion.
The cash outflow from operating activities amounted to $202 million compared with $9 million in the previous year.
It generated free cash outflow worth $274 million compared with $49 million in the first quarter of 2023.
Guidance
Huntington Ingalls reiterated its 2024 guidance. The company still expects 2024 shipbuilding revenues to be in the range of $8.8-$9.1 billion.
For Mission Technologies, HII continues to expect revenues in the range of $2.70-$2.75 billion.
The company expects free cash flow in the band of $600-$700 million for 2024.
General Dynamics Corporation (GD - Free Report) reported first-quarter 2024 earnings per share (EPS) of $2.88, which missed the Zacks Consensus Estimate of $2.89 by 0.4%. However, the figure increased 9.1% from $2.64 per share recorded in the year-ago quarter.
GD’s revenues of $10,731 million beat the Zacks Consensus Estimate of $10,201 million by 5.2%. The top line also improved 8.6% from the prior-year reported figure.
RTX Corporation’s (RTX - Free Report) first-quarter 2024 adjusted EPS of $1.34 beat the Zacks Consensus Estimate of $1.23 by 8.9%. The bottom line also improved 9.8% from the year-ago quarter’s level of $1.22.
RTX’s net sales were $19,305 million, which surpassed the Zacks Consensus Estimate of $18,412.6 million by 4.8%. The top line also improved 12% from $17,214 million recorded in the first quarter of 2023.
Lockheed Martin Corporation (LMT - Free Report) reported first-quarter 2024 adjusted earnings of $6.33 per share, which beat the Zacks Consensus Estimate of $5.80 by 9.1%. The bottom line, however, declined 1.6% from the year-ago quarter's recorded figure of $6.43.
LMT’s net sales were $17.20 billion, which surpassed the Zacks Consensus Estimate of $16.19 billion by 6.2%. The top line also increased 13.7% from $15.13 billion reported a year ago.
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Huntington Ingalls (HII) Q1 Earnings Beat, Revenues Rise Y/Y
Huntington Ingalls Industries, Inc.’s (HII - Free Report) first-quarter 2024 earnings of $3.87 per share increased a solid 19.8% from $3.23 reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of $3.50 by 10.6%.
Total Revenues
Revenues for the quarter totaled $2.81 billion, which beat the Zacks Consensus Estimate of $2.80 billion by 0.2%. The top line also increased 4.9% from $2.67 billion recorded in the year-ago quarter, driven primarily by growth at its Mission Technologies business segment.
Operational Performance
Huntington Ingalls reported segmental operating income of $170 million compared with $156 million in the first quarter of 2023. The segmental operating margin expanded 30 basis points from the prior-year quarter’s figure to 6.1%.
Huntington Ingalls Industries, Inc. Price, Consensus and EPS Surprise
Huntington Ingalls Industries, Inc. price-consensus-eps-surprise-chart | Huntington Ingalls Industries, Inc. Quote
HII received orders worth $3.1 billion in the reported quarter. As a result, its total backlog reached $48.4 billion as of Mar 31, 2024.
Segmental Performance
Newport News Shipbuilding: Revenues totaled $1.43 billion in this segment, down 4.8% year over year due to lower volumes from aircraft carriers and the Virginia class submarine program.
The segment reported operating earnings of $82 million, down 2.4% year over year due to lower volumes.
Ingalls Shipbuilding: Revenues in this segment totaled $655 million, up 13.5% year over year, primarily driven by higher volumes from amphibious assault ships and surface combatants.
The segment’s operating income of $60 million increased 9.1% year over year, partly driven by higher volumes.
Mission Technologies: Revenues in this segment totaled $750 million, up 20.2% year over year. The upside was primarily driven by higher volumes from C5ISR and cyber, electronic warfare and space.
The operating income soared 64.7% year over year to $28 million, driven by higher volumes.
Financial Update
The company’s cash and cash equivalents as of Mar 31, 2024, totaled $10 million, significantly down from $430 million as of Dec 31, 2023.
The long-term debt as of Mar 31, 2024, totaled $2.24 billion compared with the 2023-end level of $2.21 billion.
The cash outflow from operating activities amounted to $202 million compared with $9 million in the previous year.
It generated free cash outflow worth $274 million compared with $49 million in the first quarter of 2023.
Guidance
Huntington Ingalls reiterated its 2024 guidance. The company still expects 2024 shipbuilding revenues to be in the range of $8.8-$9.1 billion.
For Mission Technologies, HII continues to expect revenues in the range of $2.70-$2.75 billion.
The company expects free cash flow in the band of $600-$700 million for 2024.
Zacks Rank
Huntington Ingalls currently 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
General Dynamics Corporation (GD - Free Report) reported first-quarter 2024 earnings per share (EPS) of $2.88, which missed the Zacks Consensus Estimate of $2.89 by 0.4%. However, the figure increased 9.1% from $2.64 per share recorded in the year-ago quarter.
GD’s revenues of $10,731 million beat the Zacks Consensus Estimate of $10,201 million by 5.2%. The top line also improved 8.6% from the prior-year reported figure.
RTX Corporation’s (RTX - Free Report) first-quarter 2024 adjusted EPS of $1.34 beat the Zacks Consensus Estimate of $1.23 by 8.9%. The bottom line also improved 9.8% from the year-ago quarter’s level of $1.22.
RTX’s net sales were $19,305 million, which surpassed the Zacks Consensus Estimate of $18,412.6 million by 4.8%. The top line also improved 12% from $17,214 million recorded in the first quarter of 2023.
Lockheed Martin Corporation (LMT - Free Report) reported first-quarter 2024 adjusted earnings of $6.33 per share, which beat the Zacks Consensus Estimate of $5.80 by 9.1%. The bottom line, however, declined 1.6% from the year-ago quarter's recorded figure of $6.43.
LMT’s net sales were $17.20 billion, which surpassed the Zacks Consensus Estimate of $16.19 billion by 6.2%. The top line also increased 13.7% from $15.13 billion reported a year ago.