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Will Poor Segmental Sales Performance Impact HII's Q2 Earnings?
ZACKS· 2025-07-25 15:31
Core Insights - Huntington Ingalls Industries, Inc. (HII) is expected to report second-quarter 2025 earnings on July 31, 2025, before market open, with a four-quarter average negative earnings surprise of 4.20% [1] Revenue Performance - The Ingalls unit is projected to experience a revenue decline of 2.5% year-over-year, with estimates at $0.69 billion due to lower sales volume from amphibious assault ships [2] - The Newport News segment is also expected to see a revenue drop of 0.5% year-over-year, with estimates at $1.53 billion, impacted by lower sales volumes in aircraft carriers and submarines [3] - The Mission Technologies unit is anticipated to report a revenue decline of 2.8% year-over-year, with estimates at $0.74 billion, primarily due to lower sales volumes from C5ISR [4] - Overall, HII's second-quarter sales are estimated to decline by 1.6% year-over-year to $2.93 billion, reflecting sales declines across all major segments [5][7] Earnings Expectations - HII's second-quarter earnings per share (EPS) estimate is pegged at $3.23, indicating a significant year-over-year decline of 26.3% [6][7] - The lower operating margin in the Ingalls segment, attributed to poor performance and supply-chain disruptions, is expected to negatively impact earnings [6] Earnings Prediction Model - The Zacks model indicates that HII does not conclusively predict an earnings beat this time, with an Earnings ESP of -0.29% [8] - HII currently holds a Zacks Rank of 2, indicating a "Buy" rating [9]
Will Poor Margin Performance Impact HII's Q1 Earnings?
ZACKS· 2025-04-30 17:10
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].