NYSE$HII

Huntington Ingalls Industries Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Huntington Ingalls Industries reported record fourth quarter revenues and increased earnings per share compared to the same period last year.

HII reported a strong fourth quarter with revenues up 13% year-over-year to $3.2 billion and diluted earnings per share of $6.90. The company's total backlog reached approximately $48.1 billion. HII anticipates continued growth and cash generation in the coming years.

  • Fourth quarter revenues increased by 13% year-over-year, reaching $3.2 billion.
  • Diluted earnings per share for the fourth quarter was $6.90, compared to $3.07 in the fourth quarter of 2022.
  • Total backlog reached approximately $48.1 billion as of December 31, 2023.
  • Operating income in the fourth quarter of 2023 was $312 million, with an operating margin of 9.8%.

Headline financials

Total Revenue

$3.18B

Previous: $2.81B+13.0%
EPS (adj)

$6.90

Previous: $3.07+124.8%
Capital Expenditures

-$128M

Previous: $105M-221.9%
Net Income

$274M

Previous: $123M+122.8%
Operating Income

$312M

Previous: $105M+197.1%
Gross Profit

$491M

Previous: $339M+44.8%
Stock-Based Comp

$7M

Previous: $8M-12.5%

Revenue & EPS history

Huntington Ingalls · Revenue · Quarterly

$3.18B

Q4 2023+13%vs Q4 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 anticipates mid to long term revenue growth of 4%+, with shipbuilding revenue growth of approximately 4% and Mission Technologies revenue growth of approximately 5%. FY24 free cash flow is expected to be between $600 to $700 million.

Tailwinds

  • Mid to long term HII revenue growth of 4%+
  • Mid to long term shipbuilding revenue growth of approximately 4%
  • Mid to long term Mission Technologies revenue growth of approximately 5%
  • FY24 shipbuilding revenue between $8.8 and $9.1 billion; expect shipbuilding operating margin between 7.6% and 7.8%
  • FY24 Mission Technologies revenue between $2.7 to $2.75 billion, Mission Technologies segment operating margin between 3.0% and 3.5%; and Mission Technologies EBITDA margin between 8.0% and 8.5%

Headwinds

  • Outlook is based on current tax law and assumes the provisions requiring capitalization of R&D expenditures for tax purposes are not deferred or repealed.
  • Repeal or deferral of provisions requiring capitalization of R&D expenditures would result in elevated non-current state income tax expense.
  • Changes in government and customer priorities and requirements (including government budgetary constraints, shifts in defense spending, and changes in customer short-range and long-range plans)
  • Significant delays in appropriations for our programs and U.S. government funding more broadly
  • Our ability to estimate our future contract costs, including cost increases due to inflation, and perform our contracts effectively

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 2023

Historical avgQ4 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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