Huntington Ingalls Industries’ (HII - Free Report) second-quarter 2016 adjusted earnings of $2.32 per share surpassed the Zacks Consensus Estimate of $2.31.
Reported earnings however declined sharply from $2.83 per share in the year-ago quarter. The downside was primarily due to lower contribution from its Newport News Shipbuilding division.
Total revenue in the second quarter was $1,700 million, lagging the Zacks Consensus Estimate as well as the year-ago figure of $1,745 million.
Newport News Shipbuilding: Segment revenues were $1,090 million, down 6.5% year over year due to lower sales in Aircraft Carriers, Submarines and Energy. Segment operating income declined 6.4% owing to lower risk retirement on the VCS program, lower volume on the execution contract for the CVN-72 USS Abraham Lincoln RCOH and CVN-78 Gerald R. Ford, partially offset by higher volume on CVN-79 John F. Kennedy.
Ingalls Shipbuilding: Segment revenues were $585 million, up 7.1% year over year. The upside was primarily driven by higher revenues from Surface Combatants and Amphibious Assault Ships, partially offset by lower revenues from the Legend-class National Security Cutter (NSC) program. Operating income at the segment decreased 55.6%.
Other: Segment revenues were $27 million, down 22.9% year over year. The segment incurred an operating loss of $6 million, narrower than the year-ago loss of $64 million.
The company received new orders worth $900 million and exited the quarter with a total backlog of $20.5 billion.
Cash & cash equivalents as of Jun 30, 2016, were $852 million, down from $894 million as of Dec 31, 2015.
Long-term debt as of Jun 30, 2016, was $1,276 million, up from the 2015-end level of $1,273 million.
Cash from operating activities in the first half of 2016 was $223 million, compared with $176 million in the year-ago period.
Other Defense Releases
Lockheed Martin Corp. (LMT - Free Report) reported second-quarter 2016 earnings of $3.32 per share, surpassing the Zacks Consensus Estimate of $2.92 by 13.7%. Earnings also increased 12.9% from the year-ago level.
Northrop Grumman (NOC - Free Report) reported second-quarter 2016 adjusted earnings of $2.60 per share, beating the Zacks Consensus Estimate of $2.50 by 4%. Earnings also rose 5.3% from $2.47 earned in the year-ago quarter.
General Dynamics Corporation (GD - Free Report) announced second-quarter 2016 earnings from continuing operations of $2.44 per share, beating the Zacks Consensus Estimate of $2.30 by 6.1%.
Huntington Ingalls Industries currently has a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>