NYSE$HII

Huntington Ingalls Industries Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

HII reported record revenues and increased guidance for shipbuilding and Mission Technologies.

HII reported a strong third quarter with record revenues of $2.8 billion, up 7.2% compared to Q3 2022. The company also increased its FY23 free cash flow guidance and reaffirmed shipbuilding and Mission Technologies FY23 margin guidance.

  • Revenues reached a record $2.8 billion, a 7.2% increase year-over-year.
  • Net earnings were $148 million, or $3.70 diluted earnings per share.
  • Free cash flow was $293 million for the quarter.
  • New contract awards totaled $5.4 billion, resulting in a backlog of approximately $49 billion.

Headline financials

Total Revenue

$2.82B

Previous: $2.63B+7.2%
EPS (adj)

$3.70

Previous: $3.44+7.6%
Capital Expenditures

-$164M

Previous: -$179M+8.4%
Free Cash Flow

-$16M

Previous: -$41M+61.0%
Net Income

$148M

Previous: $138M+7.2%
Operating Income

$172M

Previous: $131M+31.3%
Gross Profit

$2.82B

Previous: $2.63B+7.2%
Cash & Equivalents

$109M

Previous: $117M-6.8%
Total Assets

$10.6B

Previous: $10.6B+0.1%
Stock-Based Comp

$9M

Previous: $12M-25.0%

Revenue & EPS history

Huntington Ingalls · Revenue · Quarterly

$2.82B

Q3 2023+7.2%vs Q3 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Huntington Ingalls · $2.85B total across 3 segments · Q3 2023

  • Newport News Shipbuilding
    $1.45B+0.6%
  • Ingalls Shipbuilding
    $711M+14.1%
  • Mission Technologies
    $685M+15.1%

Forward guidance

HII is increasing shipbuilding midpoint and Mission Technologies revenue guidance. The company is also reaffirming shipbuilding and Mission Technologies FY23 margin guidance and increasing free cash flow guidance for FY23.

Tailwinds

  • Shipbuilding revenue is revised from $8.4 - $8.6 billion to $8.5 - $8.6 billion.
  • Mission Technologies revenue is increased from approximately $2.5 billion to approximately $2.55 billion.
  • Shipbuilding operating margin is expected to be between 7.7% and 8.0% for FY23.
  • Mission Technologies segment operating margin is expected to be between 2.5% and 3.0% for FY23.
  • Free cash flow is increased from $400 - $450 million to approximately $500 million.

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 Q3 2023

Historical avgQ3 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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