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Huntington Ingalls Industries, Inc.’s (HII - Free Report) fourth-quarter 2023 earnings of $6.90 per share increased a solid 124.8% from $3.07 reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of $4.27 by 61.6%.
For 2023, the company recorded earnings of $17.07 per share, which increased 18.2% from the year-ago figure of $14.44. The full-year bottom line also comfortably beat the consensus estimate of $14.47.
Total Revenues
Revenues for the quarter totaled $3,177 million, which beat the Zacks Consensus Estimate of $2,758.2 million by 15.2%. The top line increased 13% from $2,812 million recorded in the year-ago quarter, driven by higher volumes from all three segments of the company.
For 2023, HII generated revenues of $11.45 billion, which increased 7.3% from the year-ago figure of $10.68 billion. The full-year top line also beat the Zacks Consensus Estimate of $11.04 billion.
Huntington Ingalls Industries, Inc. Price, Consensus and EPS Surprise
Huntington Ingalls reported segment operating income of $330 million compared with $145 million in the fourth quarter of 2022. The company’s segment operating margin expanded 520 basis points from the prior-year quarter’s figure to 10.4%.
HII received orders worth $12.5 billion in 2023. As a result, its total backlog reached $48.1 billion as of Dec 31, 2023.
Segmental Performance
Newport News Shipbuilding: Revenues totaled $1,665 million in this segment, up 5.1% year over year due to higher volumes in aircraft carrier construction as well as engineering and submarines.
The segment reported operating earnings of $110 million in the quarter, up 37.5% year over year, backed by higher volumes, a revenue adjustment on the RCOH of USS George Washington (CVN 73), and revenue and contract adjustments on aircraft carrier programs.
Ingalls Shipbuilding: Revenues in this segment totaled $800 million, up 21.6% year over year, primarily driven by higher volumes in amphibious assault ships and surface combatants.
The segment’s operating income of $169 million increased 238% year over year, partly driven by higher volumes and contract incentives on Arleigh Burke-class (DDG 51) destroyers.
Mission Technologies: Revenues in this segment totaled $745 million, up 23.8% year over year. The upside was primarily driven by growth in the C5ISR program.
The operating income soared 240% year over year to $51 million. The increase in the segment’s operating income was driven by higher volumes and the settlement of representations and warranties insurance claims related to the acquisition of Hydroid.
Financial Update
The company’s cash and cash equivalents as of Dec 31, 2023, were $430 million, down from $467 million as of Dec 31, 2022.
The long-term debt as of Dec 31, 2023, was $2,214 million compared with the 2022-end level of $2,506 million.
The cash flow from operating activities for 2023 was $970 million compared with $766 million in the previous year.
It generated free cash flow worth $692 million during 2023 compared with $494 million in 2022.
Guidance
Huntington Ingalls initiated its 2024 guidance. The company expects 2024 shipbuilding revenues to be in the range of $8.8-$9.1 billion.
For Mission Technologies, HII expects revenues in the range of $2.70-$2.75 billion.
The company expects free cash flow in the band of $600-$700 million for 2024.
Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2023 adjusted earnings of $7.90 per share, which beat the Zacks Consensus Estimate of $7.26 by 8.8%. The bottom line also improved 1.4% from the year-ago quarter's recorded figure.
The company’s net sales were $18.87 billion, which surpassed the Zacks Consensus Estimate of $17.98 billion by 4.9%. The top line, however, decreased 0.6% from $18.99 billion reported in the year-ago quarter.
RTX Corporation’s (RTX - Free Report) fourth-quarter 2023 adjusted earnings per share (EPS) of $1.29 beat the Zacks Consensus Estimate of $1.25 by 3.2%. The bottom line also improved 1.6% from the year-ago quarter’s level of $1.27.
RTX’s fourth-quarter adjusted sales totaled $19,824 million. The company reported GAAP sales of $19,927 million compared with $18,093 million in the fourth quarter of 2022.
Textron Inc. (TXT - Free Report) reported fourth-quarter 2023 adjusted earnings of $1.60 per share, which surpassed the Zacks Consensus Estimate of $1.53 by 4.6%. The bottom line also improved 30.1% from the year-ago quarter’s recorded figure.
The company reported total revenues of $3,892 million, which missed the Zacks Consensus Estimate of $3,917.6 million by 0.7%. However, the reported figure increased 7% from the year-ago quarter’s level of $3,636 million.
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Huntington Ingalls (HII) Q4 Earnings Beat, Revenues Rise Y/Y
Huntington Ingalls Industries, Inc.’s (HII - Free Report) fourth-quarter 2023 earnings of $6.90 per share increased a solid 124.8% from $3.07 reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of $4.27 by 61.6%.
For 2023, the company recorded earnings of $17.07 per share, which increased 18.2% from the year-ago figure of $14.44. The full-year bottom line also comfortably beat the consensus estimate of $14.47.
Total Revenues
Revenues for the quarter totaled $3,177 million, which beat the Zacks Consensus Estimate of $2,758.2 million by 15.2%. The top line increased 13% from $2,812 million recorded in the year-ago quarter, driven by higher volumes from all three segments of the company.
For 2023, HII generated revenues of $11.45 billion, which increased 7.3% from the year-ago figure of $10.68 billion. The full-year top line also beat the Zacks Consensus Estimate of $11.04 billion.
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 segment operating income of $330 million compared with $145 million in the fourth quarter of 2022. The company’s segment operating margin expanded 520 basis points from the prior-year quarter’s figure to 10.4%.
HII received orders worth $12.5 billion in 2023. As a result, its total backlog reached $48.1 billion as of Dec 31, 2023.
Segmental Performance
Newport News Shipbuilding: Revenues totaled $1,665 million in this segment, up 5.1% year over year due to higher volumes in aircraft carrier construction as well as engineering and submarines.
The segment reported operating earnings of $110 million in the quarter, up 37.5% year over year, backed by higher volumes, a revenue adjustment on the RCOH of USS George Washington (CVN 73), and revenue and contract adjustments on aircraft carrier programs.
Ingalls Shipbuilding: Revenues in this segment totaled $800 million, up 21.6% year over year, primarily driven by higher volumes in amphibious assault ships and surface combatants.
The segment’s operating income of $169 million increased 238% year over year, partly driven by higher volumes and contract incentives on Arleigh Burke-class (DDG 51) destroyers.
Mission Technologies: Revenues in this segment totaled $745 million, up 23.8% year over year. The upside was primarily driven by growth in the C5ISR program.
The operating income soared 240% year over year to $51 million. The increase in the segment’s operating income was driven by higher volumes and the settlement of representations and warranties insurance claims related to the acquisition of Hydroid.
Financial Update
The company’s cash and cash equivalents as of Dec 31, 2023, were $430 million, down from $467 million as of Dec 31, 2022.
The long-term debt as of Dec 31, 2023, was $2,214 million compared with the 2022-end level of $2,506 million.
The cash flow from operating activities for 2023 was $970 million compared with $766 million in the previous year.
It generated free cash flow worth $692 million during 2023 compared with $494 million in 2022.
Guidance
Huntington Ingalls initiated its 2024 guidance. The company expects 2024 shipbuilding revenues to be in the range of $8.8-$9.1 billion.
For Mission Technologies, HII expects revenues in the range of $2.70-$2.75 billion.
The company expects free cash flow in the band of $600-$700 million for 2024.
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 Q4 Defense Releases
Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2023 adjusted earnings of $7.90 per share, which beat the Zacks Consensus Estimate of $7.26 by 8.8%. The bottom line also improved 1.4% from the year-ago quarter's recorded figure.
The company’s net sales were $18.87 billion, which surpassed the Zacks Consensus Estimate of $17.98 billion by 4.9%. The top line, however, decreased 0.6% from $18.99 billion reported in the year-ago quarter.
RTX Corporation’s (RTX - Free Report) fourth-quarter 2023 adjusted earnings per share (EPS) of $1.29 beat the Zacks Consensus Estimate of $1.25 by 3.2%. The bottom line also improved 1.6% from the year-ago quarter’s level of $1.27.
RTX’s fourth-quarter adjusted sales totaled $19,824 million. The company reported GAAP sales of $19,927 million compared with $18,093 million in the fourth quarter of 2022.
Textron Inc. (TXT - Free Report) reported fourth-quarter 2023 adjusted earnings of $1.60 per share, which surpassed the Zacks Consensus Estimate of $1.53 by 4.6%. The bottom line also improved 30.1% from the year-ago quarter’s recorded figure.
The company reported total revenues of $3,892 million, which missed the Zacks Consensus Estimate of $3,917.6 million by 0.7%. However, the reported figure increased 7% from the year-ago quarter’s level of $3,636 million.