Huntington Ingalls Industries, Inc.’s (HII - Free Report) second-quarter 2018 earnings of $5.40 per share surpassed the Zacks Consensus Estimate of $4.21 by 28.3%. Moreover, the bottom line improved 68.2% from $3.21 a year ago, courtesy of solid revenue growth and operating income.
Total revenues came in at $2.02 billion, which surpassed the Zacks Consensus Estimate of $1.90 billion by 6.2%. The top line also rose 8.7% from $1.86 billion a year ago. The upside was driven by higher sales volume at the Newport News business division.
Newport News Shipbuilding: Revenues totaled $1,183 million, up 18.32% year over year backed by higher revenues in naval nuclear support services and aircraft carriers. Operating income improved 13.8% to $91 million owing to higher volumes.
Ingalls Shipbuilding: Revenues at this segment came in at $629 million, down 1.6% year over year on account of lower revenues from the Legend-class National Security Cutter (NSC) program and surface combatants. Operating income decreased 15.33% to $83 million due to lower risk retirement on the Tripoli and NSC programs.
Technical Solutions: Revenues at this segment summed $243 million, down 0.4% year over year. The downside can be attributed lower integrated mission solutions, fleet support and nuclear and environmental revenues. Operating income was $7 million compared with $9 million in the year-ago quarter.
Huntington Ingalls received new orders worth $1.1 billion in second quarter. As a result, the company’s total backlog reached $21 billion as of Jun 30, 2018.
Cash and cash equivalents as of Jun 30, 2018, were $398 million, down from $701 million as of Dec 31, 2017.
Long-term debt, as of Jun 30, 2018, was $1,281 million compared with the 2017-end level of $1,279 million.
Cash from operating activities, at the end of second-quarter 2018, was $359 million compared with $284 million at the end of 2017’s second quarter.
Huntington Ingalls has a Zacks Rank #4 (Sell).
Recent Defense Releases
Aerojet Rocketdyne Holdings, Inc. (AJRD - Free Report) reported second-quarter 2018 earnings of 45 cents per share, which surpassed the Zacks Consensus Estimate of 26 cents by 73.1%. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Lockheed Martin’s (LMT - Free Report) second-quarter 2018 adjusted earnings came in at $4.31 per share, outpacing the Zacks Consensus Estimate of $3.89 by 10.8%. The company carries a Zacks Rank #3 (Hold).
Textron (TXT - Free Report) reported second-quarter 2018 earnings from continuing operations of 87 cents per share, which exceeded the Zacks Consensus Estimate of 70 cents by 24.3%. The company carries a Zacks Rank #2 (Buy).
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