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Huntington Ingalls (HII) Tops Q3 Earnings, Sales Up Y/Y

Huntington Ingalls Industries, Inc.’s HII third-quarter 2017 earnings of $3.27 per share surpassed the Zacks Consensus Estimate of $2.78 by 17.6%.

Reported earnings improved 44.1% from $2.27 per share in the year-ago quarter owing to a rise in the top line and operating income.

Huntington Ingalls Industries, Inc. Price, Consensus and EPS Surprise

 

Huntington Ingalls Industries, Inc. Price, Consensus and EPS Surprise | Huntington Ingalls Industries, Inc. Quote

 

Total Revenues

Total revenues in the third quarter were $1.86 billion, ahead of the Zacks Consensus Estimate of $1.78 billion by 4.5%. The top line rose 10.7% from the year-ago figure of $1.68 billion. The upside was driven by improved sales growth in all the business divisions of the company.

Segment Details

Newport News Shipbuilding: Segment revenues were $1,053 million, up 7.7% year over year due to higher revenues from aircraft carriers, submarines and naval nuclear support services. Operating income improved 41.2% to $96 million.

Ingalls Shipbuilding: Segment revenues were $593 million, up 2.8% year over year on higher revenues in amphibious assault ships. Operating income at the segment improved 12.1% to $74 million.

Technical Solutions: Segment revenues were $241 million, up 56.5% year over year primarily, due to higher volume in integrated mission solutions services. This, in turn, was due to the acquisition of Camber in the fourth quarter last year. Higher volumes in fleet support also boosted this segment. Operating income at the segment was $22 million, up 267%.

Backlog

The company received new orders worth $3 billion during the reported quarter, as a result of which, its total backlog reached $23 billion as of Sep 30, 2017.

Financial Update

Cash and cash equivalents as of Sep 30, 2017, were $499 million, down from $720 million as of Dec 31, 2016.

Long-term debt, as of Sep 30, 2017, was $1,282 million compared with the 2016-end level of $1,278 million.

Cash from operating activities in third-quarter 2017 was $380 million, compared with $477 million in third-quarter 2016.

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 Peer Releases

Lockheed Martin Corporation LMT reported third-quarter 2017 earnings from continuing operations of $3.24 per share, which missed the Zacks Consensus Estimate of $3.25 by 0.3%. In the quarter, total revenues came in at $12.17 billion, which missed the Zacks Consensus Estimate of $12.83 billion by 5.1%.

Textron Inc. TXT recently reported third-quarter 2017 adjusted earnings from continuing operations of 65 cents per share, beating the Zacks Consensus Estimate of 62 cents by 4.8%. Total revenues in the quarter were $3.48 billion, which missed the Zacks Consensus Estimate of $3.54 billion by 1.5%.

General Dynamics Corporation GD reported third-quarter 2017 earnings from continuing operations of $2.52 per share, beating the Zacks Consensus Estimate of $2.43 by 3.7%. Its third-quarter total revenues of $7,580 million missed the Zacks Consensus Estimate of $7,892 million by 4%.

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