Back to top

Huntington Ingalls (HII) Q2 Earnings Top, Revenues Up Y/Y

Read MoreHide Full Article

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

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.

Segment Details

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.

Backlog

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.

Financial Update

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.

Zacks Rank

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).

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>



More from Zacks Analyst Blog

You May Like