Will Poor Margin Performance Impact HII's Q1 Earnings?

Core Viewpoint - Huntington Ingalls Industries, Inc. (HII) is expected to report a decline in first-quarter 2025 earnings, with negative sales growth projections and weak operating margins impacting overall performance [1][7]. Revenue Performance - The Ingalls unit is anticipated to see revenue growth, with estimates at $663.3 million, reflecting a 1.3% increase from the previous year [2]. - The Newport News unit is likely to experience improved revenue due to higher sales from the Columbia class submarine program, although the Virginia-class aircraft carrier's poor performance may negatively affect overall results [3]. - The Mission Technologies unit is expected to report a revenue decline of 8.7%, with estimates at $0.69 billion, primarily due to lower sales volumes from C5ISR [4][5]. Overall Financial Estimates - The overall sales for HII in the first quarter are estimated at $2.79 billion, indicating a decrease of 0.6% compared to the prior year [6]. - The earnings estimate for HII is projected at $2.90 per share, representing a year-over-year decline of 25.1% [7]. Earnings Prediction Model - The Zacks model indicates that HII is unlikely to achieve an earnings beat this quarter, with an Earnings ESP of -3.09% and a Zacks Rank of 3 (Hold) [8][9].