The chart below shows how HII performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HII sees a +8.18% change in stock price 10 days leading up to the earnings, and a +1.85% change 10 days following the report. On the earnings day itself, the stock moves by -6.02%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Future Contract Awards Potential: Huntington Ingalls Industries, Inc. expects to secure over $50 billion of contract awards over the next 24 months, indicating strong future revenue potential.
Sales Growth Analysis: In 2024, the company generated sales of $11.5 billion, reflecting a year-over-year increase of $81 million or approximately 1%.
Contract Value and Growth: Mission Technologies achieved awards of more than $12 billion in potential total contract value in 2024, with a book-to-bill ratio of 1.33 and 9% revenue growth year over year.
Year-End Backlog Overview: The year-end backlog stood at $49 billion, with $27 billion funded, providing a solid foundation for future revenue.
Future Revenue Projections: The company anticipates growing to $15 billion of annual revenue by 2030, with associated margin expansion and free cash flow growth.
Negative
Earnings Miss Report: Huntington Ingalls Industries, Inc. misses on earnings expectations with reported EPS of $3.15, falling short of the expected $3.28.
Quarterly Revenue Decline: Fourth quarter revenues of $3 billion decreased approximately 5% compared to the same period last year, driven by lower year-over-year revenue at all three segments.
Operating Income Decline: Segment operating income for the quarter was $103 million, down from $330 million in the fourth quarter of 2023, resulting in a significant decline in operating margin from 10.4% to 3.4%.
Earnings Decline Analysis: Net earnings in the quarter were $123 million compared to $274 million in the fourth quarter of last year, reflecting a substantial decrease in profitability.
Cash Flow Challenges: Free cash flow for 2024 was only $40 million, indicating challenges in cash generation amidst elevated capital expenditures and cash taxes.
Huntington Ingalls Industries, Inc. (NYSE:HII) Q4 2024 Earnings Call Transcript
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