Charting Huntington Ingalls Industries' Latest Earnings Release

Seth Jayson, The Motley Fool
Updated

Huntington Ingalls Industries (NYS: HII) reported earnings on May 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Huntington Ingalls Industries missed estimates on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share shrank significantly.


Gross margins increased, operating margins improved, and net margins dropped.

Revenue details
Huntington Ingalls Industries booked revenue of $1.57 billion. The seven analysts polled by S&P Capital IQ wanted to see revenue of $1.65 billion on the same basis. GAAP reported sales were 6.9% lower than the prior-year quarter's $1.68 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.67. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.67 per share. GAAP EPS of $0.67 for Q1 were 27% lower than the prior-year quarter's $0.92 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 14.7%, 80 basis points better than the prior-year quarter. Operating margin was 5.1%, 10 basis points better than the prior-year quarter. Net margin was 2.1%, 60 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.60 billion. On the bottom line, the average EPS estimate is $0.68.

Next year's average estimate for revenue is $6.56 billion. The average EPS estimate is $3.15.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 23 members out of 24 rating the stock outperform, and one member rating it underperform. Among five CAPS All-Star picks (recommendations by the highest-ranked CAPS members), five give Huntington Ingalls Industries a green thumbs-up.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Huntington Ingalls Industries is hold, with an average price target of $39.11.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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