- Huntington Ingalls’ fourth-quarter earnings per share (EPS) were $3.15, missing both last year’s $6.90 and the estimate of $3.16.
- Revenue stood at $3.00 billion, a drop of 5.4% year-over-year, and below the estimated $3.05 billion.
- The Ingalls division reported $736 million in revenue, down 8% from last year, missing the estimate of $753.8 million.
- Newport News generated $1.59 billion in revenue, decreasing by 4.6% year-over-year, below the expected $1.65 billion.
- Technical Solutions slightly outpaced expectations with $713 million in revenue, declining by 4.3% year-over-year but above the estimate of $679.4 million.
- Operating margin was 3.7%, significantly down from last year’s 9.8%.
- Operating income was $110 million, a steep 65% decrease year-over-year, below the estimated $141.2 million.
- The Ingalls segment had an operating income of $46 million, a significant decline of 73% year-over-year, missing the estimate of $58.1 million.
- Newport News reported an operating income of $38 million, down 65% from last year, and below the $68.2 million estimate.
- Technical Solutions registered an operating income of $19 million, a drop of 63% year-over-year, slightly above the estimate of $18.6 million.
- Overall segment operating margin fell significantly to 3.4% from 10.4% year-over-year.
- Ingalls segment operating margin was 6.3%, down from 21.1% last year, missing the estimate of 7.7%.
- The operating margin for Newport News was 2.4%, declining from 6.6% year-over-year, below the estimated 4.09%.
- Technical Solutions’ segment operating margin declined to 2.7% from 6.8% last year, close to the estimated 2.74%.
- Free cash flow was $277 million, a decrease of 36% from the previous year.
- The company forecasts its Shipbuilding operating margin to be between 5.5% and 6.5% for the year.
- Investor sentiment includes 3 buy recommendations, 10 hold, and 2 sell.
Huntington Ingalls Industries on Smartkarma
Analyst coverage of Huntington Ingalls Industries on Smartkarma reveals a diverse range of perspectives. Baptista Research‘s report on the company’s third-quarter earnings for 2024 paints a mixed operational performance picture. Despite a 2.4% revenue decrease year-over-year to $2.7 billion and a decrease in earnings per share to $2.56 from $3.70, future expectations amid challenges are highlighted.
Another report from Baptista Research focuses on Huntington’s robust second quarter of 2024 financial results, showcasing the company’s ability to navigate challenges and capitalize on growth opportunities. With a 6.8% year-over-year revenue increase to $3 billion driven by the Mission Technologies segment’s exceptional 19% revenue growth, prospects appear optimistic for the company’s future performance.
A look at Huntington Ingalls Industries Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.8 |
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 is positioned favorably for the long term. With a solid Dividend score of 4, investors can expect a reliable payout over time. While the Value and Growth scores stand at 3, indicating a fair valuation and moderate growth potential. However, the Resilience and Momentum scores at 2 suggest some areas of improvement needed to enhance the company’s stability and market momentum.
Huntington Ingalls Industries, Inc. (HII) is a prominent player in the design, construction, and maintenance of both nuclear and non-nuclear ships for the US Navy and Coast Guard. Additionally, the company offers post-delivery services for military ships globally. Operating through its two main divisions, Newport News Shipbuilding and Ingalls Shipbuilding, HII holds a significant position in the defense industry.
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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