What's in Store for Huntington Ingalls (HII) in Q2 Earnings?

Huntington Ingalls Industries, Inc. HII is slated to report second-quarter 2022 results on Aug 4, before market open.

Huntington Ingalls delivered an earnings surprise of 5.74%, in the last reported quarter. The company came up with a four-quarter average negative earnings surprise of 12.14%.

Factors to Note

Higher volumes on amphibious assault ships programs as well as moderate naval nuclear support service revenues are expected to have favorably impacted the company’s revenues in the soon-to-be-reported quarter.

Moreover, growth from the Virginia class and Columbia class submarine programs as well as revenues for carrier construction and overhaul are also projected to have boosted the company’s Q2 performance.

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

Further, acquisition benefits from the buyout of Alion are expected to benefit HII’s overall Q2 results.

However, the company’s suppliers are being impacted by the shortage of labor as well as inflation issues, which create a risk of delays in delivery of key materials for HII’s shipbuilding programs. This might have had some adverse impact on the company’s overall quarterly performance.

Second-Quarter Estimates

The Zacks Consensus Estimate for second-quarter sales is pegged at $2.64 billion, indicating an improvement of 18.3% from the prior-year reported figure.

The Zacks Consensus Estimate for second-quarter earnings is pegged at $3.43 per share, indicating an improvement of 7.2% from the prior-year reported figure.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for HII 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. However, that is not the case here.

Huntington Ingalls has an Earnings ESP of +1.46% and a Zacks Rank #3. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Another 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 +5.71% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for SPR’s second-quarter sales is pegged at $1.25 billion. The consensus estimate for the bottom line is pegged at a loss of 23 cents per share. The company came up with an earnings surprise of 104.92% in the last reported quarter.

Recent Defense Releases

Hexcel Corporation HXL reported second-quarter 2022 adjusted earnings of 33 cents per share, which exceeded the Zacks Consensus Estimate of 30 cents by 10%.

The company’s net sales totaled $393 million, which beat the Zacks Consensus Estimate of $383 million by 2.6%. Moreover, the top line witnessed an improvement of 22.7% from the year-ago quarter’s $320.3 million.

Teledyne Technologies Inc. TDY reported second-quarter 2022 adjusted earnings of $4.43 per share, which surpassed the Zacks Consensus Estimate of $4.38 by 1.1%. However, the bottom line declined 3.9% from the year-ago quarter’s $4.61 per share.

Total sales in the second quarter amounted to $1,355.8 million, which exceeded the Zacks Consensus Estimate of $1,352 million by 0.3%. The top line also improved 21% from $1,121 million reported a year ago.

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
 
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