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Will Segmental Performance Aid Huntington's (HII) Q1 Earnings?

Huntington Ingalls Industries, Inc. HII is slated to report its first-quarter 2023 results on May 4 before market open.

Huntington Ingalls delivered a negative earnings surprise of 2.23% in the last reported quarter. The company came up with a four-quarter average earnings surprise of 7.60%. Sales growth in the Mission Technologies and Newport business segments may have boosted its top line in the first quarter.

Ingalls’ Revenue Growth Likely to Remain Flat

Higher revenues from surface combatants and amphibious assault ships are likely to have boosted Ingalls’ first-quarter performance. However, lower revenues in the Legend-class National Security Cutter program may offset the positive impact. The Zacks Consensus Estimate for Ingalls’ first-quarter revenues, pegged at $630.8 million, is almost in line with the year-ago quarter’s reported figure.

Newport

Higher revenues from aircraft carriers and submarines may have bolstered the Newport segment’s revenues in the soon-to-be-reported quarter. Moreover, the planned delivery of SSN 796 New Jersey, coupled with the planned float off of SSN 798 Massachusetts and the premeditated re-delivery of CVN 73, may have aided the performance of the segment in the soon-to-be-reported quarter.

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The Zacks Consensus Estimate for Newport’s first-quarter revenues, pegged at $1,409.7 million, indicates growth of 1.4% from the year-ago quarter’s reported figure.

Mission Technologies

The benefits of the Alion acquisition and contracts won in prior quarters are projected to have boosted the top line of the Mission Technologies unit. The Zacks Consensus Estimate for Mission Technologies’ first-quarter revenues, pegged at $616 million, suggests an increase of 4.4% from the year-ago quarter’s reported figure.

Huntington Ingalls Industries, Inc. Price and EPS Surprise

Huntington Ingalls Industries, Inc. Price and EPS Surprise
Huntington Ingalls Industries, Inc. Price and EPS Surprise

Huntington Ingalls Industries, Inc. price-eps-surprise | Huntington Ingalls Industries, Inc. Quote

First-Quarter Estimates

The positive outlook for sales for the Mission Technologies’ and Newport business segments may have provided an upside to the overall top line. Moreover, the solid demand for products may have aided the overall revenues of the company in the first quarter.

However, higher inflation and supply-chain challenges and a tight labor market are some of the factors which may have continued to impact HII’s top line in the first quarter of 2023. However, Huntington’s continuous effort to mitigate the impact of such factors may have contributed to the overall outcome of first-quarter sales.

The Zacks Consensus Estimate for first-quarter sales is pegged at $2.60 billion, indicating an increase of 0.9% from the prior-year reported figure. Anticipated overall growth in sales, along with a solid operating margin, is likely to have boosted HII’s first-quarter bottom line.

The Zacks Consensus Estimate for first-quarter earnings is pegged at $3.06 per share. This indicates a decline of 12.6% from the prior-year reported figure.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Huntington Ingalls this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.

Huntington Ingalls has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

A Stock to Consider

Here is one defense player you may want to consider as it has the right combination of elements to post an earnings beat this season:

Spirit Aerosystems SPR has an Earnings ESP of +16.58% and a Zacks Rank #3. Spirit Aerosystems delivered a four-quarter average negative earnings surprise of 157.65%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for SPR’s first-quarter sales is pegged at $1.48 billion. This implies an improvement of 25.8% from the prior-year reported figure.

Upcoming Releases

Leidos Holdings, Inc. LDOS is slated to report first-quarter 2023 results on May 2 before market open.  The Zacks Consensus Estimate for first-quarter sales is pegged at $3.66 billion. This indicates an increase of 4.7% from the prior-year reported figure.

The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.59 per share, calling for an upside of 0.6% from the prior-year reported figure. The long-term earnings growth rate of LDOS is 7.9%.

Curtiss-Wright Corporation CW is slated to report first-quarter 2023 results on May 3 before market open. It delivered a four-quarter average earnings surprise of 4.42%. The Zacks Consensus Estimate for first-quarter sales is pegged at $593.9 million, indicating an improvement of 6.2% from the prior-year reported figure.

The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.45 per share. This suggests 10.7% growth from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Spirit Aerosystems Holdings, Inc. (SPR) : Free Stock Analysis Report

Huntington Ingalls Industries, Inc. (HII) : Free Stock Analysis Report

Curtiss-Wright Corporation (CW) : Free Stock Analysis Report

Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report

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