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Huntington Ingalls Industries, Inc.’s (HII - Free Report) second-quarter 2024 earnings of $4.38 per share increased a solid 33.9% from $3.27 reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of $3.55 by 23.4%.
The year-over-year improvement can be attributed to solid sales as well as operating income growth as compared with the year-ago quarter’s reported actuals.
Total Revenues
Revenues for the quarter totaled $2.98 billion, which beat the Zacks Consensus Estimate of $2.84 billion by 4.7%. The top line also increased 6.8% from $2.79 billion recorded in the year-ago quarter, driven by growth at each of its three business segments.
Huntington Ingalls Industries, Inc. Price, Consensus and EPS Surprise
Huntington Ingalls reported segmental operating income of $203 million compared with $169 million in the second quarter of 2023. The segmental operating margin expanded 70 basis points from the prior-year quarter’s figure to 6.1%.
HII received orders worth $3.1 billion in the reported quarter. As a result, its total backlog reached $48.5 billion as of Jun 30, 2024, compared with $48.4 billion as of Mar 31, 2024.
Segmental Performance
Newport News Shipbuilding: Revenues totaled $1.54 billion in this segment, up 1.7% year over year, driven primarily by higher volumes from the Columbia-class submarine program.
The segment reported operating earnings of $111 million, up 16.8% year over year on account of contract adjustments, incentives and volume on the Refueling and Complex Overhaul program.
Ingalls Shipbuilding: Revenues in this segment totaled $712 million, up 7.2% year over year, primarily driven by higher volumes from amphibious assault ships and surface combatants.
The segment’s operating income of $56 million dropped 13.8% year over year, due to lower-risk retirement on surface combatants
Mission Technologies: Revenues in this segment totaled $765 million, up 18.6% year over year. The upside was primarily driven by higher volumes from C5ISR and cyber, electronic warfare and space programs.
The operating income soared 300% year over year to $36 million, driven by higher volumes and stronger performance from fleet sustainment.
Financial Update
The company’s cash and cash equivalents as of Jun 30, 2024, totaled $11 million, significantly down from $430 million as of Dec 31, 2023. The long-term debt as of Jun 30, 2024, totaled $1.72 billion compared with the 2023-end level of $2.21 billion.
The cash outflow from operating activities amounted to $211 million against a cash inflow of $73 million a year ago.
It generated free cash outflow worth $373 million compared with $35 million in the second quarter of 2023.
Guidance
Huntington Ingalls partially updated its 2024 guidance. The company still expects 2024 shipbuilding revenues to be in the range of $8.8-$9.1 billion.
For Mission Technologies, HII now expects revenues to be in the range of $2.75-$2.80 billion, up from the prior guidance of $2.70-$2.75 billion.
The company still expects free cash flow to be in the band of $600-$700 million for 2024.
Teledyne Technologies Inc. (TDY - Free Report) reported second-quarter 2024 adjusted earnings of $4.58 per share, which surpassed the Zacks Consensus Estimate of $4.49 by 2%. However, the bottom line declined 1.9% from $4.67 recorded in the year-ago quarter.
Total sales were $1.37 billion, which missed the Zacks Consensus Estimate of $1.38 billion by 0.2%. The top line also declined 3.6% from $1.42 billion reported in the year-ago quarter.
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2024 adjusted earnings of $7.11 per share, which beat the Zacks Consensus Estimate of $6.45 by 10.2%. The bottom line also improved 5.6% from the year-ago quarter's recorded figure of $6.73.
Net sales were $18.12 billion, which surpassed the Zacks Consensus Estimate of $17.10 billion by 6%. The top line also increased 8.6% from $16.69 billion reported in the year-ago quarter.
Leidos Holdings, Inc.’s (LDOS - Free Report) second-quarter 2024 adjusted earnings of $2.63 per share beat the Zacks Consensus Estimate of $2.26 by 16.4%. The bottom line also increased 46.1% from $1.80 registered in the prior-year quarter.
Total revenues of $4.13 billion beat the Zacks Consensus Estimate of $4.04 million by 2.2%. The top line also improved 7.7% year over year.
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Huntington Ingalls (HII) Q2 Earnings Beat, Revenues Rise Y/Y
Huntington Ingalls Industries, Inc.’s (HII - Free Report) second-quarter 2024 earnings of $4.38 per share increased a solid 33.9% from $3.27 reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of $3.55 by 23.4%.
The year-over-year improvement can be attributed to solid sales as well as operating income growth as compared with the year-ago quarter’s reported actuals.
Total Revenues
Revenues for the quarter totaled $2.98 billion, which beat the Zacks Consensus Estimate of $2.84 billion by 4.7%. The top line also increased 6.8% from $2.79 billion recorded in the year-ago quarter, driven by growth at each of its three business segments.
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 segmental operating income of $203 million compared with $169 million in the second quarter of 2023. The segmental operating margin expanded 70 basis points from the prior-year quarter’s figure to 6.1%.
HII received orders worth $3.1 billion in the reported quarter. As a result, its total backlog reached $48.5 billion as of Jun 30, 2024, compared with $48.4 billion as of Mar 31, 2024.
Segmental Performance
Newport News Shipbuilding: Revenues totaled $1.54 billion in this segment, up 1.7% year over year, driven primarily by higher volumes from the Columbia-class submarine program.
The segment reported operating earnings of $111 million, up 16.8% year over year on account of contract adjustments, incentives and volume on the Refueling and Complex Overhaul program.
Ingalls Shipbuilding: Revenues in this segment totaled $712 million, up 7.2% year over year, primarily driven by higher volumes from amphibious assault ships and surface combatants.
The segment’s operating income of $56 million dropped 13.8% year over year, due to lower-risk retirement on surface combatants
Mission Technologies: Revenues in this segment totaled $765 million, up 18.6% year over year. The upside was primarily driven by higher volumes from C5ISR and cyber, electronic warfare and space programs.
The operating income soared 300% year over year to $36 million, driven by higher volumes and stronger performance from fleet sustainment.
Financial Update
The company’s cash and cash equivalents as of Jun 30, 2024, totaled $11 million, significantly down from $430 million as of Dec 31, 2023.
The long-term debt as of Jun 30, 2024, totaled $1.72 billion compared with the 2023-end level of $2.21 billion.
The cash outflow from operating activities amounted to $211 million against a cash inflow of $73 million a year ago.
It generated free cash outflow worth $373 million compared with $35 million in the second quarter of 2023.
Guidance
Huntington Ingalls partially updated its 2024 guidance. The company still expects 2024 shipbuilding revenues to be in the range of $8.8-$9.1 billion.
For Mission Technologies, HII now expects revenues to be in the range of $2.75-$2.80 billion, up from the prior guidance of $2.70-$2.75 billion.
The company still expects free cash flow to be in the band of $600-$700 million for 2024.
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.
Recent Defense Releases
Teledyne Technologies Inc. (TDY - Free Report) reported second-quarter 2024 adjusted earnings of $4.58 per share, which surpassed the Zacks Consensus Estimate of $4.49 by 2%. However, the bottom line declined 1.9% from $4.67 recorded in the year-ago quarter.
Total sales were $1.37 billion, which missed the Zacks Consensus Estimate of $1.38 billion by 0.2%. The top line also declined 3.6% from $1.42 billion reported in the year-ago quarter.
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2024 adjusted earnings of $7.11 per share, which beat the Zacks Consensus Estimate of $6.45 by 10.2%. The bottom line also improved 5.6% from the year-ago quarter's recorded figure of $6.73.
Net sales were $18.12 billion, which surpassed the Zacks Consensus Estimate of $17.10 billion by 6%. The top line also increased 8.6% from $16.69 billion reported in the year-ago quarter.
Leidos Holdings, Inc.’s (LDOS - Free Report) second-quarter 2024 adjusted earnings of $2.63 per share beat the Zacks Consensus Estimate of $2.26 by 16.4%. The bottom line also increased 46.1% from $1.80 registered in the prior-year quarter.
Total revenues of $4.13 billion beat the Zacks Consensus Estimate of $4.04 million by 2.2%. The top line also improved 7.7% year over year.