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Huntington Ingalls (HII) Beats Q3 Earnings on Higher Sales

Huntington Ingalls Industries ' HII third-quarter 2015 adjusted earnings of $2.35 per share beat the Zacks Consensus Estimate of $2.09 by 12.4%.

Earnings in the reported quarter were also up 19.9% from $1.96 per share in the year-ago period. The upside was primarily due to strong performance from its two business segments.

Huntington Ingalls Industries Inc. (HII) - Earnings Surprise | FindTheCompany

Total Revenues

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%.

Segment Details

Newport News Shipbuilding: Segment revenues in the reported quarter were $1,177 million, up 7.3% year over year on the back of higher sales in submarines and fleet support services. Segment operating income, however, decreased 1% year over year owing to lower performance on the construction contract for CVN-78 Gerald R. Ford and lower volumes on Aircraft Carriers RCOH programs.

Ingalls Shipbuilding: Segment revenues in the reported quarter were $593 million, up 6.1% year over year. The upside was primarily due to higher revenues in Surface Combatants. Operating income in the segment increased 40% year over year due to better performance on the LHA-6 America-class and the LPD-17 San Antonio-class programs.

Other: Segment revenues were $30 million, down 50.8% year over year. The segment incurred an operating loss of $5 million, flat year over year.

Backlog

In the reported quarter, the company received new orders worth $0.8 billion and exited the quarter with a total backlog of $23.3 billion.

Financial Update

Cash & cash equivalents as of Sep 30, 2015, were $671 million, down from $990 million as of Dec 31, 2014.

Long-term debt as of Sep 30, 2015, was $1,305 million, down from the 2014-end level of $1,592 million.

Cash from operating activities in the first nine months of 2015 was $417 million compared with $314 million in the year-ago period.

Other Defense Releases

General Dynamics Corporation GD announced third-quarter 2015 earnings from continuing operations of $2.28 per share, comfortably surpassing the Zacks Consensus Estimate of $2.10 by 8.6%. Earnings also increased 11.2% from the prior-year figure of $2.05, backed by a solid operating performance.

Lockheed Martin Corp. LMT posted third-quarter 2015 earnings of $2.77 per share, comfortably surpassing the Zacks Consensus Estimate of $2.70 by 2.6%. Earnings also increased 0.4% from $2.76 per share a year ago, as higher fighter jet demand led to increased revenues.

Northrop Grumman NOC reported third-quarter 2015 adjusted earnings of $2.41 per share, beating the Zacks Consensus Estimate of $2.21 by 9% and increasing 3.9% from $2.32 per share in the year-ago quarter.

Zacks Rank

Huntington Ingalls Industries currently holds a Zacks Rank #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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