NYSE$HII

Huntington Ingalls Industries Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Huntington Ingalls reported an increase in revenue and backlog, driven by shipbuilding contracts, but experienced a decrease in operating income due to goodwill impairment.

Huntington Ingalls Industries reported a 9.7% increase in Q4 revenues to $2.4 billion, driven by growth in Newport News Shipbuilding. Diluted earnings per share were $3.61, while adjusted diluted earnings per share was $4.36. New contract awards totaled $9.7 billion, resulting in a total backlog of $46.5 billion.

  • Q4 revenues increased by 9.7% to $2.4 billion compared to the same period in 2018.
  • Diluted earnings per share were $3.61, while adjusted diluted earnings per share was $4.36, excluding non-cash asset impairment charges.
  • New contract awards in Q4 totaled $9.7 billion, bringing total backlog to $46.5 billion.
  • The company's shipbuilding results were in line with expectations, with positive operating momentum in both shipyards.

Headline financials

Total Revenue

$2.41B

Previous: $2.2B+9.7%
EPS (adj)

$4.36

Previous: $4.94-11.7%
Capital Expenditures

$181M

Previous: $170M+6.5%
Free Cash Flow

$385M

Previous: $478M-19.5%
Net Income

$149M

Previous: $212M-29.7%
Operating Income

$186M

Previous: $213M-12.7%
Gross Profit

$432M

Previous: $470M-8.1%
Cash & Equivalents

$75M

Previous: $240M-68.8%
Total Assets

$7.03B

Previous: $6.38B+10.2%
Stock-Based Comp

$11M

Previous: $9M+22.2%

Revenue & EPS history

Huntington Ingalls · Revenue · Quarterly

$2.41B

Q4 2019+9.7%vs Q4 2018
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Huntington Ingalls · $2.46B total across 3 segments · Q4 2019

  • Newport News Shipbuilding
    $1.39B
  • Ingalls Shipbuilding
    $702M
  • Mission Technologies
    $369M

Forward guidance

Huntington Ingalls Industries did not provide specific forward guidance in this earnings report. However, they mentioned that they have entered 2020 with very positive operating momentum and an unprecedented backlog of shipbuilding work.

Tailwinds

  • Very positive operating momentum after achieving key program milestones.
  • Unprecedented backlog of shipbuilding work serving as a strong foundation.
  • Actively shaping business portfolio to optimize long-term value creation.
  • Focusing on markets aligned with Navy and broader customer priorities.
  • Shipbuilding results were in line with expectations.

Headwinds

  • Non-cash asset impairment charges totaling $35 million.
  • Decision to divest its oil and gas business.
  • Operating income decreased compared to the same quarter last year.
  • Segment operating loss for Technical Solutions due to goodwill impairment.
  • Decreased segment operating income for Ingalls Shipbuilding.

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 Q4 2019

Historical avgQ4 2019

-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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