Shipbuilder Huntington Ingalls Industries (HII -0.22%) missed quarterly estimates and warned that there are no easy fixes to its execution issues. Investors abandoned ship, sending Huntington Ingalls' shares down 11% for the month of February, according to data provided by S&P Global Market Intelligence.
Huntington Ingalls (HII 5.39%) stock has been a losing bet for defense investors this month. Shares of the Navy shipbuilder got torpedoed for an 18% loss in the first week of February after "missing earnings" in its Q4 2024 report.
Huntington Ingalls Industries is a leading naval shipbuilder with competitive advantages, but faces profitability and operational challenges, leading to a 'Sell' recommendation. Despite a healthy backlog and revenue growth, the company missed earnings and revenue estimates, causing a significant share price decline. HII offers a high dividend yield, but risks such as budget cuts, tariffs, and rising debt levels are concerning.
Huntington Ingalls stock has plunged again post-earnings, now trading 9% lower since my November buy rating, prompting a review of the company's rating. HII faces significant risks from higher input costs and supply chain challenges, impacting revenues and causing negative adjustments until 2027. Q4 earnings missed expectations with a 5.4% revenue decline and a 68.8% drop in operating income, highlighting ongoing industry pressures.
Huntington Ingalls Industries, Inc. (NYSE:HII ) Q4 2024 Earnings Conference Call February 6, 2025 9:00 AM ET Company Participants Christie Thomas - Vice President of Investor Relations Christopher Kastner - President and Chief Executive Officer Thomas Stiehle - Executive Vice President and Chief Financial Officer Conference Call Participants Douglas Harned - Sanford C. Bernstein & Co. Seth Seifman - JPMorgan Scott Mikus - Melius Research Pete Skibitski - Alembic Global Advisors LLC David Strauss - Barclays Scott Deuschle - Deutsche Bank Myles Walton - Wolfe Research Jordan Lyonnais - Bank of America Merrill Lynch Gautam Khanna - TD Cowen Operator Ladies and gentlemen, thank you for standing by, and welcome to the Fourth Quarter 2024 HII Earnings Conference Call.
Military shipbuilder Huntington Ingalls (HII -17.68%) missed quarterly expectations, and its issues are likely to continue into the new year.
HII's Q4 revenues total $3 billion, which miss the Zacks Consensus Estimate by 0.9%. The top line declines 5.4% year over year.
Although the revenue and EPS for Huntington Ingalls (HII) give a sense of how its business performed in the quarter ended December 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Huntington Ingalls (HII) came out with quarterly earnings of $3.15 per share, missing the Zacks Consensus Estimate of $3.28 per share. This compares to earnings of $6.90 per share a year ago.
Military Shipbuilder Huntington Ingalls missed estimates for fourth-quarter revenue and profit on Thursday, hurt by lower performance at its Newport News shipbuilding facility, sending its shares down 11% in pre-market trading.
Evaluate the expected performance of Huntington Ingalls (HII) for the quarter ended December 2024, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.
Huntington Ingalls Industries: A Shipbuilding Giant At A Turning Point