Huntington Ingalls Industries (HII) earnings: expect 3% revenue growth

3:09 pm ET, 01 May 2019

Huntington Ingalls Industries, Inc. (HII) is announcing earnings on May 02 before market opening. Wondering what revenue and earnings will look like?

What should you expect from the upcoming earnings?

Revenue for the next quarter is expected to be $1.94B, which implies 3% growth rate year-over-year.

Earnings per share are expected to come in at $3.27. If this materializes, EPS will decline -6% year-over-year.

How did the stock do last month?

Over the last month, Huntington Ingalls Industries (HII) returned +9%.

How is the stock valued?

Huntington Ingalls Industries, Inc. (HII) forward P/E ratio is 13.1, and it’s low compared to its industry peers’ P/E ratios.

What do analysts say about the stock?

Huntington Ingalls Industries, Inc. (HII) average analyst price target is 11.42% above its current price ($222.58).

For the latest price and information on Huntington Ingalls Industries, Inc., please visit Finstead and ask for "HII", "HII analysis" or "HII news".

Powered by Froala Editor

Huntington Ingalls Industries, Inc. (HII) Stock Guide

Updated at: 11:56 pm ET, 17 Sep 2020

Before we start: if you're looking for HII stock price, you can quickly find it out by visiting Finny and typing "HII quote". If you're looking for a quick scoop on HII stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "HII". You'll get all this info in one place. Or you can just type "HII news" to get the latest stock news.

Looking to buy or sell Huntington Ingalls Industries, Inc. (HII)? Interested in getting the full scoop on HII, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this HII stock guide, we'll address key questions about HII, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are HII earnings?
2. What is HII dividend?
3. What is HII dividend yield?
4. HII buy or sell? What is HII Finny Score?
5. What are the reasons to buy HII? Why should I buy HII stock?
6. What are the reasons to sell HII? Why should I sell HII stock?
7. What are HII key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are HII earnings?

HII trailing 12-month earnings per share (EPS) is $12.91.

2. What is HII dividend?

HII forward dividend is $4.12.

3. What is HII dividend yield?

HII forward dividend yield is 2.72%.

Analysis

4. HII buy or sell? What is HII Finny Score?

#{finnyScore:67}Our quantitative analysis shows 6 reasons to buy and 3 reasons to sell HII, resulting in Finny Score of 67.

5. What are the reasons to buy HII? Why should I buy HII stock?

Here are the reasons to buy HII stock:

  • The company is the prime industrial employer in Virginia. It is the sole designer and manufacturer of nuclear powered aircraft carriers in the U.S. Over 70% of the active U.S. Navy fleet consists of Huntington Ingalls ships.
  • The shipbuilding business outlook remains strong given the fiscal 2019 proposal made by President Trump, which has been unveiled by the Pentagon on February 12. The latest budget’s major war fighting investments include spending plans of $18.3 billion on Shipbuilding. No doubt, one of the prime beneficiaries of this new spending proposal will be Huntington Ingalls.
  • Huntington Ingalls maintains stable liquidity and capital resources to fund its operations. The company’s net cash from operating activities at the end of 2017 was $814 million. Free cash flow was $453 million at 2017-end.
  • Management at Huntington Ingalls believes that the recent adoption of the Tax Cuts and Jobs Act by the U.S. administration has created an opportunity for the company to increase its investments. The company had earlier made a commitment to invest $1.5 billion in its Shipbuilding business through 2020, to improve affordability, efficiency and competitiveness as well as to preserve and protect current and future U.S. Navy programs. Management believes that the latest Tax Reform will allow the company to bump up this commitment by $300 million.
  • HII stock price ($153.09) is close to the 52-week low ($149.53). Perhaps now is a good time to buy? See HII price chart.
  • HII forward dividend yield is 2.72%, higher than the industry (0.56%) and sector (0.49%) forward dividend yields. See HII forward dividend chart.
  • HII forward P/E ratio is 13.35, which is low compared to its industry peers’ P/E ratios. See HII forward P/E ratio chart.
  • HII Price/Sales ratio is 0.68, which is low compared to its industry peers’ P/S ratios. See HII forward Price/Sales ratio chart.
  • HII cash to debt ratio is 0.26, higher than the average industry (0.16) and sector (0.12) cash to debt ratio. See HII cash to debt chart.
  • HII Enterprise Value/Revenue multiple is 0.89, which is low compared to its industry peers’ Enterprise Value/Revenue multiples. See HII Enterprise Value/Revenue chart.

6. What are the reasons to sell HII? Why should I sell HII stock?

Let's look at the reasons to sell HII stock (i.e., the bear case):

  • Huntington Ingalls derives its revenues primarily from the U.S. government. In 2017, approximately 87% of its revenues was generated from the U.S. Navy and around 6% from the U.S. Coast Guard. Only 3% of its 2017 revenues were from commercial customers.
  • Given uncertain and unpredictable U.S. defense spending levels, any reduction in shipbuilding activity by the U.S. Navy will result in fewer contracts to the same fixed number of shipyards. Notably, fleet size has been reduced from 566 ships in 1989 to 274 ships as of Dec 31, 2016. It will inevitably put pressure on employment in the industry.
  • HII quarterly revenue growth was -7.40%, lower than the industry and sector average revenue growth (1.91% and 1.01%, respectively). See HII revenue growth chart.
  • HII profitability is declining. The YoY profit margin change was -1.67 percentage points. See HII profitability chart.
  • HII PEG ratio (P/E adjusted for growth) is 4.54, which is high compared to its industry peers’ PEG ratios. See HII PEG chart.

Key Stats

7. What are HII key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for HII:

Metrics HII
Price $150.41
Average Price Target / Upside N/A
Average Analyst Rating N/A
Forward Dividend Yield 2.72%
Industry Aerospace & Defense
Sector Industrials
Number of Employees 40,000
Market Cap $6.09B
Forward P/E Ratio 13.35
Price/Book Ratio 0.68
Revenue (TTM) $8.92B
YoY Quarterly Revenue Growth -7.40%
Profit Margin 5.92%

If you liked this analysis, check out Stock Guides for other stocks.

Follow Us