Aerospace and defense company Huntington Ingalls (NYSE: HII) will be reporting earnings this Tuesday before market hours. Here’s what you need to know.
Huntington Ingalls beat analysts’ revenue expectations last quarter, reporting revenues of $3.48 billion, up 15.7% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ revenue estimates and a decent beat of analysts’ adjusted operating income estimates.
Is Huntington Ingalls a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Huntington Ingalls’s revenue to grow 10.5% year on year, a reversal from the 2.5% decrease it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing in majority upward revisions over the last 30 days. Huntington Ingalls has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Huntington Ingalls’s peers in the defense contractors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. General Dynamics delivered year-on-year revenue growth of 10.3%, beating analysts’ expectations by 5.9%, and RTX reported revenues up 8.7%, topping estimates by 2.7%. General Dynamics traded up 9.5% following the results while RTX was down 7.6%.
Read our full analysis of General Dynamics’s results here and RTX’s results here.
There has been positive sentiment among investors in the defense contractors segment, with share prices up 9.4% on average over the last month. Huntington Ingalls is down 12% during the same time and is heading into earnings with an average analyst price target of $407.09 (compared to the current share price of $358.61).
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