Newport News, VA-based Huntington Ingalls Industries Inc.’s HII shipbuilding division won a contract worth $200 million from the U.S. Naval Sea Systems Command of the District of Columbia to build LPD 28, the 12th amphibious transport dock of the San Antonio (LPD 17) class.
Per the contract, Huntington Ingalls will use the funds for purchasing long-lead-time material and major equipment, such as main engines, diesel generators, deck equipment, shafting, propellers, valves and other long-lead systems.
Work is expected to be completed in Apr 2022 and will be performed in Pascagoula, MS.
In March, Huntington Ingalls launched its 10th San Antonio class LPD, the John P. Murtha. It had taken three years to build, and the company expects to deliver it to the Navy in early 2016.
With a length of 684 feet and width of 105 feet, the San Antonio-class ships are designed to deliver Marines their equipment and supplies ashore, using air cushion or conventional landing craft and amphibious assault vehicles that are supported by helicopters or vertical takeoff and landing aircraft such as the MV-22 Osprey.
Huntington Ingalls is the sole designer and manufacturer of nuclear-powered ships in the U.S. Over 70% of the active U.S. Navy fleet consists of Huntington Ingalls’ ships.
We remind investors that Huntington Ingalls recently reported third-quarter 2015 results, wherein adjusted earnings of $2.35 per share beat the Zacks Consensus Estimate of $2.09 by 12.4%. Earnings were also up 19.9% from $1.96 per share in the year-ago period. The upside was primarily due to a strong performance at its two business segments. Total revenues in the third quarter of 2015 were $1,800 million, ahead of the Zacks Consensus Estimate of $1,698 million by 6% and higher than the year-ago figure of $1,717 million by 4.8%.
Last quarter, the company received new orders worth $0.8 billion and had a total backlog of $23.3 billion.
Zacks Rank
Huntington Ingalls currently carries a Zacks Rank #3 (Hold). Leidos Holdings LDOS is a better-ranked stock in the industry, sporting a Zacks Rank #1 (Strong Buy). The Boeing Company BA and General Dynamics Corp. GD are other favorably ranked stocks in the defense space, each carrying a Zacks Rank #2 (Buy).
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