NYSE$HII

Huntington Ingalls Industries Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Huntington Ingalls Industries reported an increase in revenue and diluted earnings per share for the fourth quarter of 2020.

Huntington Ingalls Industries (HII) reported Q4 2020 revenues of $2.8 billion, a 14.3% increase from Q4 2019. Diluted earnings per share was $6.15, compared to $3.61 in the same period of 2019. New contract awards in the quarter were approximately $3.5 billion, bringing total backlog to approximately $46.0 billion as of Dec. 31, 2020.

  • Revenues were $2.8 billion in the quarter, up 14.3% from Q4 2019.
  • Operating margin was 11.1% in the quarter, compared to 7.7% in Q4 2019.
  • Diluted earnings per share was $6.15 in the quarter, compared to $3.61 in Q4 2019.
  • Backlog of $46.0 billion at year end.

Headline financials

Total Revenue

$2.76B

Previous: $2.41B+14.3%
EPS (adj)

$6.15

Previous: $4.36+41.1%
Capital Expenditures

$133M

Previous: $181M-26.5%
Free Cash Flow

$757M

Previous: $385M+96.6%
Net Income

$249M

Previous: $149M+67.1%
Operating Income

$305M

Previous: $186M+64.0%
Gross Profit

$547M

Previous: $432M+26.6%
Cash & Equivalents

$512M

Previous: $75M+582.7%
Total Assets

$8.16B

Previous: $7.03B+16.0%
Stock-Based Comp

$7M

Previous: $11M-36.4%

Revenue & EPS history

Huntington Ingalls · Revenue · Quarterly

$2.76B

Q4 2020+14.3%vs Q4 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Huntington Ingalls · $2.81B total across 3 segments · Q4 2020

  • Newport News Shipbuilding
    $1.75B+25.9%
  • Ingalls Shipbuilding
    $752M+7.1%
  • Mission Technologies
    $311M-15.7%

Forward guidance

Huntington Ingalls Industries provided its financial outlook for 2021. Expect FY21 shipbuilding revenue between $8.2 and $8.4 billion; and shipbuilding operating margin between 7.0% and 8.0%. Expect FY21 Technical Solutions revenue of approximately $1.0 billion and segment operating margin between 3.0% and 5.0%. Expect FY21 free cash flow between $150 and $250 million

Tailwinds

  • Shipbuilding Revenue between $8.2B - $8.4B
  • Shipbuilding Operating Margin between 7.0% - 8.0%
  • Technical Solutions Revenue ~$1.0B
  • Technical Solutions Segment Operating Margin 3.0% - 5.0%
  • Free Cash Flow $150M - $250M

Headwinds

  • Operating FAS/CAS Adjustment ($163M)
  • Non-current State Income Tax Expense ~($5M)
  • Interest Expense ($72M)
  • Non-operating Retirement Benefit $181M
  • Effective Tax Rate ~22%

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 2020

Historical avgQ4 2020

-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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