Huntington Ingalls Industries’ HII second-quarter 2015 adjusted earnings of $2.36 per share beat the Zacks Consensus Estimate of $2.09 by 12.9%.
Earnings in the reported quarter were also up 15.7% from $2.04 in the year-ago period. The upside was primarily due to strong performance from its two business segments.
Total Revenues
Total revenues in the second quarter of 2015 were $1,745 million, below the Zacks Consensus Estimate of $1,751 million by 0.3% but higher than the year-ago figure of $1,719 million by 1.5%.
Segment Details
Newport News Shipbuilding: Segment revenues in the reported quarter were $1,166 million, up 3.3% year over year on the back of higher sales in submarines and fleet support services. Segment operating income increased 4.8% year over year owing to performance improvement and higher risk retirement on the VCS program.
Ingalls Shipbuilding: Segment revenues in the reported quarter were $546 million, down 4.5% year over year. The decline was primarily due to lower sales of amphibious assault ships and the National Security Cutter (“NSC”) program. Operating income in the segment increased 5.1% year over year due to risk retirement on DDG-113 John Finn, NSC-5 James and NSC-6 Munro.
Other: Segment revenues were $35 million, up 75% year over year.
Backlog
In the reported quarter, the company received new orders worth $4.5 billion and exited the quarter with a total backlog of $24.3 billion.
Financial Update
Cash & cash equivalents as of Jun 30, 2015, were $960 million, down from $990 million as of Dec 31, 2014.
Long-term debt as of Jun 30, 2015, was $1,305 million, down from the 2014-end level of $1,592 million.
Cash from operating activities in the first half of 2015 was $163 million compared with $58 million in the year-ago period.
Other Defense Releases
General Dynamics Corp. GD announced second-quarter 2015 earnings from continuing operations of $2.27 per share, comfortably surpassing the Zacks Consensus Estimate of $2.03 by 11.8%. Earnings also increased 20.7% from the prior-year figure of $1.88, backed by improved operating margins.
Pentagon’s prime contractor, Lockheed Martin Corp. LMT posted second-quarter 2015 earnings of $2.94 per share, comfortably surpassing the Zacks Consensus Estimate of $2.67 by 10.1%. Earnings also jumped 6.5% from $2.76 per share a year ago.
Northrop Grumman Corp.’s NOC second-quarter 2015 adjusted earnings came in at $2.47 per share, 6% higher than the Zacks Consensus Estimate of $2.33.
Zacks Rank
Huntington Ingalls Industries currently holds a Zacks Rank #3 (Hold).
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