Aerospace and defense company Huntington Ingalls (NYSE:HII) will be announcing earnings results tomorrow before the bell. Here’s what to look for.
Huntington Ingalls missed analysts’ revenue expectations by 4.2% last quarter, reporting revenues of $2.75 billion, down 2.4% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ adjusted operating income estimates.
Is Huntington Ingalls a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Huntington Ingalls’s revenue to decline 3.7% year on year to $3.06 billion, a reversal from the 13% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.09 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Huntington Ingalls has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Huntington Ingalls’s peers in the defense contractors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Mercury Systems delivered year-on-year revenue growth of 13%, beating analysts’ expectations by 23.9%, and CACI reported revenues up 14.5%, topping estimates by 3.4%. CACI traded down 9.3% following the results.
Read our full analysis of Mercury Systems’s results here and CACI’s results here.
Investors in the defense contractors segment have had steady hands going into earnings, with share prices up 1.7% on average over the last month. Huntington Ingalls is up 3.5% during the same time and is heading into earnings with an average analyst price target of $228.01 (compared to the current share price of $195.76).
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