NYSE$HII

Huntington Ingalls Industries Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Huntington Ingalls Industries reported record first quarter revenues and reaffirmed FY23 guidance expectations.

Huntington Ingalls Industries (HII) reported a 3.8% increase in first-quarter revenue, reaching a record $2.7 billion, driven by growth in Newport News Shipbuilding and Mission Technologies. The company reaffirmed its FY23 guidance expectations. New contract awards in the first quarter of 2023 were approximately $2.6 billion, bringing total backlog to approximately $47.0 billion as of March 31, 2023.

  • Record first quarter revenues of $2.7 billion, up 3.8% compared to first quarter 2022
  • Net earnings of $129 million or $3.23 diluted earnings per share
  • Awarded $1.3 billion contract for amphibious transport dock LPD 32
  • Company reaffirms FY23 guidance expectations

Headline financials

Total Revenue

$2.67B

Previous: $2.58B+3.8%
EPS (adj)

$3.23

Previous: $3.50-7.7%
Capital Expenditures

-$43M

Previous: -$43M+0.0%
Free Cash Flow

$86M

Previous: $97M-11.3%
Net Income

$129M

Previous: $140M-7.9%
Operating Income

$141M

Previous: $138M+2.2%
Gross Profit

$2.67B

Previous: $2.58B+3.8%
Cash & Equivalents

$318M

Previous: $330M-3.6%
Total Assets

$10.8B

Previous: $10.6B+2.8%
Stock-Based Comp

$12M

Previous: $9M+33.3%

Revenue & EPS history

Huntington Ingalls · Revenue · Quarterly

$2.67B

Q1 2023+3.8%vs Q1 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Huntington Ingalls · $2.71B total across 3 segments · Q1 2023

  • Newport News Shipbuilding
    $1.51B+8.3%
  • Mission Technologies
    $624M+5.8%
  • Ingalls Shipbuilding
    $577M-8.6%

Forward guidance

HII reaffirms its prior 2023 outlook expectations.

Tailwinds

  • Expect FY23 shipbuilding revenue between $8.4 and $8.6 billion
  • Expect FY23 shipbuilding operating margin between 7.7% and 8.0%
  • Expect FY23 Mission Technologies revenue of approximately $2.5 billion
  • Expect FY23 Mission Technologies segment operating margin between 2.5% and 3.0%
  • Expect FY23 Mission Technologies EBITDA margin between 8.0% and 8.5%

Headwinds

  • Operating FAS/CAS Adjustment: ($68M)
  • Non-current State Income Tax Expense: ~$0M
  • Interest Expense: ($105M)
  • Non-operating Retirement Benefit: $149M
  • Effective Tax Rate: ~21%

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.6%

Avg return

Earnings day

-2.3%

Avg return

5 days after

-1.1%

Avg return

30 days after

52%

33 / 64 earnings

Positive

+10.1%

Q4 2017

Best reaction

-24.5%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.6%-13.0%-19.4%
Q4 2025-10.6%-3.3%+3.9%
Q3 2025+7.0%+5.9%+5.1%
Q1 2025-1.2%+1.1%-3.2%
Q4 2024-18.3%-14.2%+0.2%
Q3 2024-24.5%-22.9%-21.0%
Q2 2024-5.9%-8.4%+1.0%
Q1 2024-11.1%-10.3%-8.6%
Q4 2023+3.7%+2.8%+13.0%
Q3 2023+5.9%+5.1%+8.0%
Q2 2023-0.4%-0.8%-3.1%
Q1 2023+0.3%-1.2%+5.4%
Q4 2022-1.9%-4.2%-7.9%
Q3 2022-3.9%-3.6%-5.2%
Q2 2022+4.1%+3.1%+3.7%
Q1 2022-2.7%-5.6%-4.2%
Q4 2021-1.8%-3.8%+10.1%
Q3 2021-3.0%-2.6%-9.4%
Q2 2021+2.6%+3.3%+1.4%
Q1 2021+1.9%+0.9%+4.4%
Q4 2020+5.0%+4.4%+16.3%
Q3 2020+1.3%+7.2%+11.3%
Q2 2020-6.0%-5.7%-17.4%
Q1 2020+1.1%-2.9%+13.4%
Q4 2019-8.8%-12.1%-33.9%
Q3 2019+7.4%+8.5%+8.3%
Q2 2019-9.7%-9.7%-8.5%
Q1 2019-5.0%-6.5%-8.1%
Q4 2018+1.7%+0.9%-5.4%
Q3 2018-4.5%-8.9%-15.2%
Q2 2018+2.8%+1.8%+6.5%
Q1 2018-9.1%-4.3%-3.7%
Q4 2017+10.1%+10.2%+5.3%
Q3 2017+3.9%+2.5%+1.6%
Q2 2017+2.8%+2.8%+3.3%
Q1 2017-2.8%-2.5%-3.6%
Q4 2016+3.0%+3.4%+3.9%
Q3 2016-8.3%-6.0%+13.1%
Q2 2016-2.4%-2.8%-4.2%
Q1 2016+6.9%
Q4 2015-1.4%
Q3 2015+7.2%
Q2 2015-1.1%
Q1 2015-11.2%
Q4 2014+7.2%
Q3 2014+1.8%
Q2 2014+6.1%
Q1 2014-3.4%
Q4 2013+4.6%
Q3 2013+4.7%
Q2 2013+0.5%
Q1 2013-0.6%
Q4 2012+5.7%
Q3 2012-0.0%
Q2 2012+6.6%
Q1 2011-6.8%
Q1 2012-1.5%
Q4 2009-0.5%
Q4 2011-0.5%
Q3 2010+4.7%
Q3 2011+4.7%
Q2 2011+0.0%
Q4 2010+0.0%
Q2 2010+0.0%
Q1 2010

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