Will Segmental Performance Aid Huntington's (HII) Q3 Earnings?

Huntington Ingalls Industries, Inc. HII is slated to report third-quarter 2022 results on Nov 3 before market open.

Huntington Ingalls delivered an earnings surprise of 29.45% in the last reported quarter. The company came up with a four-quarter average negative earnings surprise of 12.38%. Strong sales growth across most of its segments may have benefited its top line in the third quarter.

Ingalls

Higher volume growth in amphibious assault ships might have added impetus to the revenues of the segment in the third quarter.

The Zacks Consensus Estimate for Ingalls’ third-quarter revenues, pegged at $639 million, suggests an improvement of 1.8% from the year-ago quarter’s reported figure.

Newport

Higher volume growth in aircraft carriers is expected to have positively impacted the revenues of the segment in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for Newport’s third-quarter revenues, pegged at $1,446 million, indicates growth of 6.9% from the year-ago quarter’s reported figure.

Mission

Higher volume growth in defense and federal solutions, coupled with a strong order pipeline, may have favorably impacted the segment’s revenues in the third quarter.

The Zacks Consensus Estimate for Mission’s third-quarter revenues, pegged at $625 million, suggests a solid increase of 58.6% from the year-ago quarter’s reported figure.

Third-Quarter Estimates

With improved revenues projected from the majority of Huntington Ingalls’ segments, one might remain optimistic about the overall top line of the company. Also, the acquisition of Alion may have aided the overall revenues of the company in the third quarter.

The Zacks Consensus Estimate for third-quarter sales is pegged at $2.69 billion, indicating an increase of 14.9% from the prior-year reported figure.

A strong top line is likely to have aided HII’s third-quarter bottom line. However, increased research and development costs and higher general & administrative expenses might have dented the overall margin performance, thus adversely impacting the bottom line of the company.

The Zacks Consensus Estimate for third-quarter earnings is pegged at $3.53 per share, indicating a decline of 3.3% from the prior-year reported figure.

Huntington Ingalls Industries, Inc. Price and EPS Surprise

Huntington Ingalls Industries, Inc. Price and EPS Surprise

Huntington Ingalls Industries, Inc. price-eps-surprise | Huntington Ingalls Industries, Inc. Quote

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Huntington Ingalls this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.

Huntington Ingalls has an Earnings ESP of +0.35% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Another Stock to Consider

Here is one defense player you may also want to consider as it has the right combination of elements to post an earnings beat this season:

Spirit Aerosystems SPR has an Earnings ESP of +51.95% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Spirit boasts a long-term earnings growth rate of 8.5%. The Zacks Consensus Estimate for SPR’s third-quarter sales is pegged at $1.30 billion, indicating an improvement of 32.2% from the prior-year quarter’s reported figure.

Upcoming Defense Releases

Embraer S.A. ERJ boasts a long-term earnings growth rate of 17%. The Zacks Consensus Estimate for ERJ’s third-quarter earnings suggests an improvement of 183.3% from the prior-year reported figure.

The Zacks Consensus Estimate for Embraer’s third-quarter sales indicates an increase of 24.8% from the prior-year reported figure.

Spire Global, Inc. SPIR boasts a long-term earnings growth rate of 7.9%. The Zacks Consensus Estimate for SPIR’s third-quarter earnings indicates growth of 58.3% from the prior-year reported figure.

The Zacks Consensus Estimate for Spire’s third-quarter sales indicates an increase of 109.8% from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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EmbraerEmpresa Brasileira de Aeronautica (ERJ): Free Stock Analysis Report
 
Spirit Aerosystems Holdings, Inc. (SPR): Free Stock Analysis Report
 
Huntington Ingalls Industries, Inc. (HII): Free Stock Analysis Report
 
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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.

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