- EPS Beat Estimates: Huntington Ingalls’ 2Q EPS was $4.38 compared to $3.27 last year, surpassing the estimated $3.49.
- Revenue Growth: Total revenue reached $2.98 billion, an increase of 6.8% year-over-year, beating the estimated $2.84 billion.
- Ingalls Revenue: Revenue for Ingalls was $712 million, up 7.2% year-over-year, above the estimate of $688.5 million.
- Newport News Revenue: Newport News revenue came in at $1.54 billion, a rise of 1.7% year-over-year, just above the $1.52 billion estimate.
- Technical Solutions Revenue: Revenue for Technical Solutions surged 19% year-over-year to $765 million, significantly higher than the $656.9 million estimate.
- Operating Margin Improvement: Overall operating margin improved to 6.3% from 5.6% year-over-year.
- Backlog: The company’s backlog stands at $48.5 billion.
- Operating Income: Total operating income was $189 million, up 21% year-over-year, beating the $158.7 million estimate.
- Ingalls Operating Income: Ingalls reported operating income of $56 million, down 14% year-over-year, missing the estimate of $65 million.
- Newport News Operating Income: Newport News operating income increased by 17% year-over-year to $111 million, higher than the $91.2 million estimate.
- Technical Solutions Operating Income: Operating income for Technical Solutions was $36 million, a significant jump from $9 million last year, beating the $17.8 million estimate.
- Segment Operating Margins:
- Overall segment margin: 6.8% vs. 6.1% y/y, estimate 5.54%
- Ingalls: 7.9% vs. 9.8% y/y, estimate 9.46%
- Newport News: 7.2% vs. 6.3% y/y, estimate 5.98%
- Technical Solutions: 4.7% vs. 1.4% y/y, estimate 2.71%
- Free Cash Flow: The company reported a negative free cash flow of $99 million, compared to a positive $14 million last year, and an estimated negative $97.3 million.
- Year Forecast: The company maintains its forecast for Shipbuilding operating margins between 7.6% and 7.8%.
- Analyst Ratings: 8 buys, 5 holds, 2 sells.
Huntington Ingalls Industries on Smartkarma
On Smartkarma, independent analyst Baptista Research recently covered Huntington Ingalls Industries Inc., highlighting the company’s strategic focus on technological enhancements in mission technologies as a major driver. HII, well-known for its expertise in shipbuilding and defense technologies, reported a mixed first quarter for 2024. The quarter saw a record revenue of $2.8 billion, showcasing strong demand for HII’s shipbuilding offerings and substantial growth in their Mission Technologies segment. The revenue increase of 4.9% compared to the previous year was largely fueled by advancements in these key sectors.
A look at Huntington Ingalls Industries Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Huntington Ingalls Industries shows a balanced outlook across key factors including value, dividend, growth, resilience, and momentum, all scoring equally at 3. This suggests a stable and moderate long-term outlook for the company. Huntington Ingalls Industries, Inc. (HII) is a company specializing in the design, construction, and maintenance of both nuclear and non-nuclear ships for the U.S. Navy and Coast Guard. Additionally, the company offers post-sale services for military vessels globally.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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