Huntington Ingalls' Q1 results are likely to be impacted by lower operating margins expected from the majority of its business segments.
Huntington Ingalls (HII) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Huntington Ingalls stock has gained momentum in the last few trading sessions, aided by policy support and a double upgrade by Goldman Sachs. Tackling operating margin pressures will be key to an expansion in Huntington Ingalls' valuation multiples. Encouraging signs have appeared on the horizon. A policy implementation lag has to be expected, and investors should also keep a close eye on overall defense budget growth or the lack thereof.
HII reveals that it has delivered more than 700 REMUS UUVs to 30 countries, including 14 NATO members.
Investment banker Citigroup made the case last month for buying Huntington Ingalls (HII 11.27%) stock as a cheap way to invest in defense. Today, investors are finally getting the memo, and bidding up Huntington Ingalls stock a strong 10.5% (through 10:35 a.m.
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.