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Huntington Ingalls (HII) Q4 Earnings Down Y/Y, Revenues Miss
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Huntington Ingalls Industries, Inc.’s (HII - Free Report) fourth-quarter 2021 adjusted earnings of $2.84 per share declined 34.7% from $4.35 reported in the prior-year quarter.
The company reported GAAP earnings of $2.99 per share compared with $6.15 in the fourth quarter of 2020.
The Zacks Consensus Estimate for the fourth quarter is pegged at $3.06 per share.
Huntington Ingalls reported adjusted earnings of $13.03 for full-year 2021, which increased from $10.00 reported in 2020. Full-year earnings missed the Zacks Consensus Estimate of $13.59 per share.
Total Revenues
Total revenues came in at $2,677 million, lagging the Zacks Consensus Estimate of $2,738.4 million by 2.2%. The top line also declined 2.9% from $2,757 million in the year-ago quarter.
In 2021, HII generated sales worth $9.52 billion, up 1.7% from the year-ago figure. Full-year sales missed the Zacks Consensus Estimate of $9.59 billion by 0.7%.
Huntington Ingalls Industries, Inc. Price, Consensus and EPS Surprise
Huntington Ingalls reported operating income of $120 million compared with $305 million in the fourth quarter of 2020. The company’s operating margin was 4.5%, which contracted 660 basis points from the prior-year quarter’s figure.
Huntington Ingalls received orders worth $1 billion in the fourth quarter. As a result, the company’s total backlog reached $48.5 billion as of Dec 31, 2021.
Segmental Performance
Newport News Shipbuilding: Revenues totaled $1,539 million in this segment, down 12.1% year over year due to lower revenues from aircraft carriers and submarines.
The segment reported operating earnings of $95 million for the quarter, which declined 25.8% year over year.
Ingalls Shipbuilding: Revenues in this segment totaled $581 million, down 22.7% year over year due to lower revenues from the Legend-class National Security Cutter program, the Arleigh Burke-class guided missile program and amphibious assault ships.
The segment’s operating income of $48 million decreased 50% year over year.
Technical Solutions: Revenues in this segment totaled $586 million, up a solid 88.4% year over year, primarily driven by the acquisition of Alion Science and Technology.
Operating income dropped 5.6% year over year to $17 million.
Financial Update
The company’s cash and cash equivalents at the end of 2021 were $627 million, up from $512 million as of Dec 31, 2020.
Long-term debt at the end of 2021 was $3,298 million compared with the 2020-end level of $1,686 million.
Cash from operating activities at the end of 2021 was $760 million, down from $1.093 million at the end of 2020.
Guidance
Huntington Ingalls expects 2022 shipbuilding revenues in the range of $8.2-$8.5 billion and Technical Solutions’ revenues of approximately $2.6 billion.
The company also projects to generate free cash flow in the range of $300-$350 million.
General Dynamics (GD - Free Report) reported fourth-quarter 2021 earnings from continuing operations of $3.39 per share, which beat the Zacks Consensus Estimate of $3.37 by 0.6%.
General Dynamics’ long-term earnings growth is projected at 9.6%. The Zacks Consensus Estimate for GD’s 2022 earnings per share (EPS) indicates year-over-year growth of 5.3%.
Raytheon Technologies Corporation’s (RTX - Free Report) fourth-quarter 2021 adjusted EPS of $1.08 outpaced the Zacks Consensus Estimate of $1.01 by 6.9%.
Raytheon Technologies’ long-term earnings growth is projected at 10.2%. The Zacks Consensus Estimate for RTX’s 2022 EPS indicates year-over-year growth of 12.2%.
Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2021 adjusted earnings of $7.24 per share, which surpassed the Zacks Consensus Estimate of $7.23 by 0.1%.
Lockheed Martin’s long-term earnings growth is projected at 3.6%. The Zacks Consensus Estimate for LMT’s 2022 EPS indicates year-over-year growth of 17.5%.
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Huntington Ingalls (HII) Q4 Earnings Down Y/Y, Revenues Miss
Huntington Ingalls Industries, Inc.’s (HII - Free Report) fourth-quarter 2021 adjusted earnings of $2.84 per share declined 34.7% from $4.35 reported in the prior-year quarter.
The company reported GAAP earnings of $2.99 per share compared with $6.15 in the fourth quarter of 2020.
The Zacks Consensus Estimate for the fourth quarter is pegged at $3.06 per share.
Huntington Ingalls reported adjusted earnings of $13.03 for full-year 2021, which increased from $10.00 reported in 2020. Full-year earnings missed the Zacks Consensus Estimate of $13.59 per share.
Total Revenues
Total revenues came in at $2,677 million, lagging the Zacks Consensus Estimate of $2,738.4 million by 2.2%. The top line also declined 2.9% from $2,757 million in the year-ago quarter.
In 2021, HII generated sales worth $9.52 billion, up 1.7% from the year-ago figure. Full-year sales missed the Zacks Consensus Estimate of $9.59 billion by 0.7%.
Huntington Ingalls Industries, Inc. Price, Consensus and EPS Surprise
Huntington Ingalls Industries, Inc. price-consensus-eps-surprise-chart | Huntington Ingalls Industries, Inc. Quote
Operational Performance
Huntington Ingalls reported operating income of $120 million compared with $305 million in the fourth quarter of 2020. The company’s operating margin was 4.5%, which contracted 660 basis points from the prior-year quarter’s figure.
Huntington Ingalls received orders worth $1 billion in the fourth quarter. As a result, the company’s total backlog reached $48.5 billion as of Dec 31, 2021.
Segmental Performance
Newport News Shipbuilding: Revenues totaled $1,539 million in this segment, down 12.1% year over year due to lower revenues from aircraft carriers and submarines.
The segment reported operating earnings of $95 million for the quarter, which declined 25.8% year over year.
Ingalls Shipbuilding: Revenues in this segment totaled $581 million, down 22.7% year over year due to lower revenues from the Legend-class National Security Cutter program, the Arleigh Burke-class guided missile program and amphibious assault ships.
The segment’s operating income of $48 million decreased 50% year over year.
Technical Solutions: Revenues in this segment totaled $586 million, up a solid 88.4% year over year, primarily driven by the acquisition of Alion Science and Technology.
Operating income dropped 5.6% year over year to $17 million.
Financial Update
The company’s cash and cash equivalents at the end of 2021 were $627 million, up from $512 million as of Dec 31, 2020.
Long-term debt at the end of 2021 was $3,298 million compared with the 2020-end level of $1,686 million.
Cash from operating activities at the end of 2021 was $760 million, down from $1.093 million at the end of 2020.
Guidance
Huntington Ingalls expects 2022 shipbuilding revenues in the range of $8.2-$8.5 billion and Technical Solutions’ revenues of approximately $2.6 billion.
The company also projects to generate free cash flow in the range of $300-$350 million.
Zacks Rank
Huntington Ingalls currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Recent Defense Releases
General Dynamics (GD - Free Report) reported fourth-quarter 2021 earnings from continuing operations of $3.39 per share, which beat the Zacks Consensus Estimate of $3.37 by 0.6%.
General Dynamics’ long-term earnings growth is projected at 9.6%. The Zacks Consensus Estimate for GD’s 2022 earnings per share (EPS) indicates year-over-year growth of 5.3%.
Raytheon Technologies Corporation’s (RTX - Free Report) fourth-quarter 2021 adjusted EPS of $1.08 outpaced the Zacks Consensus Estimate of $1.01 by 6.9%.
Raytheon Technologies’ long-term earnings growth is projected at 10.2%. The Zacks Consensus Estimate for RTX’s 2022 EPS indicates year-over-year growth of 12.2%.
Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2021 adjusted earnings of $7.24 per share, which surpassed the Zacks Consensus Estimate of $7.23 by 0.1%.
Lockheed Martin’s long-term earnings growth is projected at 3.6%. The Zacks Consensus Estimate for LMT’s 2022 EPS indicates year-over-year growth of 17.5%.