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
HII's Q4 results are likely to be impacted by the weak sales performance delivered by two of its major business segments.
Huntington Ingalls (HII) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.