Huntington Ingalls Beats on Earnings and Revenues

On Wednesday, military shipbuilder Huntington Ingallsreleased its earnings results for fiscal Q4 and full-year 2012.

Q4 revenues of $1.82 billion beat consensus analyst estimates by 7%. Q4 earnings of $0.98 per share exceeded expectations by about 9%. Full-year revenues came to $6.71 billion, and earnings to $2.91 per diluted share, resulting in a trailing P/E ratio of 16.2 on the stock.

In terms of growth, Huntington increased its full-year revenues by 2% in comparison to fiscal 2011. Earnings compared favorably to 2011. Total operating income for the year came to $358 million, versus $100 million earned in 2011.

The need to make cash contributions to fund its pension fund pinched cash flow at Huntington last year, with cash from operations falling 37% to $332 million. Capital spending further ate into this haul, with the result that free cash flow for the year came to just $170 million, or only 51% of last year's cash profits. Regardless, when compared with net income reported under GAAP ($146 million), Huntington's free cash flow still exceeded the GAAP number.

Huntington shares gained 3.6% in the wake of Wednesday's news, closing at $47.12.

The article Huntington Ingalls Beats on Earnings and Revenues originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Huntington Ingalls Industries. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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