Huntington Ingalls Industries ' HII fourth-quarter 2016 adjusted earnings of $3.67 per share surpassed the Zacks Consensus Estimate of $2.48 by 48%.
Adjusted earnings also improved 88.2% from $1.95 per share in the year-ago quarter, driven by substantial top line as well as operating income growth. Barring the adjustment, the company's reported earnings came in at $4.20 per share, reflecting a huge year-over-year improvement of 296.2%.
For 2016, the company's adjusted earnings came in at $10.15, up 38.5% year over year. The full-year earnings figure however missed the Zacks Consensus Estimate of $10.42 by 2.6%.
Total revenue in the fourth quarter was $1.92 billion, above the Zacks Consensus Estimate of $1.85 billion. The top line also improved 0.9% from the year-ago figure of $1.91 billion. The upside was primarily driven by higher contribution from its Ingalls and Technical Solutions divisions.
For 2016, the company reported revenues worth $7.07 billion, up 0.7% year over year. The full-year earnings figure was almost in line with the Zacks Consensus Estimate of $7.08 billion.
Huntington Ingalls Industries, Inc. Price, Consensus and EPS Surprise
On Dec 1, 2016, the company closed its previously announced acquisition of Camber Corporation and simultaneously formed a new reporting segment, Technical Solutions. So now, Huntington Ingalls generates revenues through the following three segments:
Newport News Shipbuilding : Segment revenues were $1,119 million, down 6.3% year over year due to lower sales in Aircraft Carriers and Submarines. Operating income improved 19.8% to $139 million, owing to favorable changes in overhead costs and the receipt of a $15 million local government incentive grant, partially offset by lower risk retirement on the VCS program.
Ingalls Shipbuilding : Segment revenues were $641 million, up 10.5% year over year on higher revenues in surface combatants and the Legend-class National Security Cutter ("NSC") program. Operating income at the segment increased 44.1% to $85 million, courtesy of higher risk retirement and improved performance by the LPD, DDG and NSC programs.
Technical Solutions : Segment revenues were $186 million, up 20.8% year over year primarily due to the acquisition of Camber and higher revenues in oil and gas and nuclear and environmental services. Operating income at the segment was $1 million, against the year-ago period's operating loss of $51 million. The improvement was driven by better performance in oil and gas and fleet support.
The company received new orders worth $5.2 billion during 2016, as a result of which its total backlog reached to $21 billion as of Dec 31, 2016.
Cash & cash equivalents as of Dec 31, 2016, were $720 million, down from $894 million as of Dec 31, 2015.
Long-term debt, as of Dec 31, 2016, was $1,278 million, slightly above the 2015-end level of $1,273 million.
Cash from operating activities in 2016 was $822 million, compared with $861 million in 2015.
Huntington Ingalls currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
AAR Corp. AIR reported second-quarter fiscal 2017 earnings of 35 cents per share, up 34.6% from the year-ago figure of 26 cents.
Rockwell Collins Inc. COL reported financial results for first-quarter fiscal 2017 ended Dec 31, 2016. The company's adjusted earnings per share of $1.20 surpassed the Zacks Consensus Estimate of $1.15 by 4.3%. Reported earnings, however, slipped 0.8% from $1.21 earned a year ago.
Raytheon Company RTN reported fourth-quarter 2016 adjusted earnings from continuing operations of $1.88 per share, beating the Zacks Consensus Estimate of $1.86 by 1.1%.
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