Home Uncategorized Will Huntington’s ( HII ) segment performance help Q3 earnings?

Will Huntington’s ( HII ) segment performance help Q3 earnings?

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Huntington Ingalls Industries, Inc. HII is scheduled to report Q3 2022 results on November 3 before the market opens.

Huntington Ingalls had an unexpected return of 29.45% in the last reported quarter. The company came up with an average negative return for four quarters of 12.38%. Strong sales growth in most segments may have contributed to its top line in the third quarter.

Ingalls

Higher amphibious assault ship volume growth may have added momentum to the segment’s third-quarter revenue.

The Zacks Consensus Estimate for Ingalls’ third-quarter revenue, pegged at $639 million, indicates an improvement of 1.8% compared to the reported quarter last year.

Newport

Higher growth in aircraft carrier volumes is expected to positively impact the segment’s revenues in the coming quarter.

The Zacks Consensus Estimate for Newport’s third-quarter revenue, pegged at $1,446 million, indicates a rise of 6.9% compared to the reported quarter last year.

Mission

Higher growth in defense and federal solutions combined with higher orders may have had a positive impact on the segment’s revenues in the third quarter.

The Zacks Consensus Estimate for Mission’s third-quarter revenue, pegged at $625 million, points to a solid 58.6% increase over the reported quarter last year.

Estimates for the third quarter

With projected revenue gains from most of Huntington Ingalls’ segments, one can remain optimistic about the company’s overall bottom line. Additionally, the Alion acquisition could have helped the company’s overall revenue in the third quarter.

The Zacks Consensus Estimate for third-quarter sales is $2.69 billion, which represents an increase of 14.9% year-over-year.

A strong top likely helped HII’s earnings in the third quarter. However, increased research and development costs and higher general and administrative expenses may have reduced overall profitability, negatively impacting the company’s bottom line.

Zacks Consensus Estimate for earnings for the third quarter pegged at $3.53 per share, representing a year-over-year decline of 3.3%.

Huntington Ingalls Industries, Inc. Price and Earnings Surprise

Huntington Ingalls Industries, Inc. prices-eps-surprise | Quote from Huntington Ingalls Industries, Inc

What the Zacks model reveals

Our validated model predicts that Huntington Ingalls’ earnings will be higher this time around. A combination of positive Profit ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of higher returns, which is the case here.

Huntington Ingalls has an Earnings ESP of +0.35% and a Zacks Rank #2. You can find the best stocks to buy or sell before they are announced in our ESP income filter.

Another stock to consider

Here’s one defensive player you might want to consider as well, as he has the right combination of elements to post the best returns this season:

Spirit Aerosystems SPR has an Earnings ESP of +51.95% and a Zacks Rank #3. You see a complete list of today’s Zacks #1 Rank stocks here.

Spirit boasts a long-term revenue growth rate of 8.5%. The Zacks Consensus Estimate for SPR’s third-quarter sales is $1.30 billion, indicating an improvement of 32.2% compared to the reported quarter in the prior year.

Upcoming Defense releases

Embraer SA ERJ boasts a long-term revenue growth rate of 17%. The Zacks Consensus Estimate for ERJ’s Q3 earnings points to a 183.3% year-over-year improvement.

The Zacks Consensus Estimate for Embraer’s third-quarter sales shows a 24.8% year-over-year increase.

Spire Global, Inc. SPIR boasts a long-term earnings growth rate of 7.9%. The Zacks Consensus Estimate for SPIR’s third-quarter earnings shows a 58.3% year-over-year increase.

The Zacks Consensus Estimate for Spire’s third-quarter sales shows a 109.8% year-over-year increase.

Stay tuned for future earnings announcements with help Zacks Earnings Calendar.

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.

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