Aerospace and defense company Huntington Ingalls (NYSE:HII) will be reporting results tomorrow morning. Here’s what you need to know.
Huntington Ingalls beat analysts’ revenue expectations by 4.7% last quarter, reporting revenues of $2.98 billion, up 6.8% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ earnings estimates.
Is Huntington Ingalls a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Huntington Ingalls’s revenue to grow 1.7% year on year to $2.86 billion, slowing from the 7.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.75 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Huntington Ingalls has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 4% on average.
Looking at Huntington Ingalls’s peers in the defense contractors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Leidos delivered year-on-year revenue growth of 6.9%, beating analysts’ expectations by 3%, and CACI reported revenues up 11.2%, topping estimates by 7%. CACI traded up 5.4% following the results.
Read our full analysis of Leidos’s results here and CACI’s results here.
Investors in the defense contractors segment have had steady hands going into earnings, with share prices flat over the last month. Huntington Ingalls is down 4.1% during the same time and is heading into earnings with an average analyst price target of $284.85 (compared to the current share price of $253.76).
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