Huntington Ingalls Industries, Inc. HII is scheduled to release fourth-quarter 2024 earnings on Feb. 6, 2025, before market open.

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The company has a four-quarter average earnings surprise of 15.55%. Solid revenue performance across the majority of its business segments and robust margin performance in its shipbuilding business are likely to have contributed to HII’s overall performance.

Anticipated Decline in Revenues in HII’s Ingalls Unit

Lower revenues from amphibious assault ships and the Legend class National Security Cutter program are likely to have impacted the Ingalls segment’s top line in the fourth quarter.

The Zacks Consensus Estimate for the Ingalls unit’s revenues is pegged at $770.3 million, which indicates a decline of 3.7% from the year-ago quarter’s figure.

Huntington Ingalls Industries, Inc. Price and EPS Surprise

Huntington Ingalls Industries, Inc. price-eps-surprise | Huntington Ingalls Industries, Inc. Quote

HII’s Newport News Unit Likely to Have Seen Decline

Lower sales volumes from naval nuclear support services and unfavorable cumulative catch-up adjustments on the Virginia class (SSN 774) submarine program as well as aircraft carriers are likely to have adversely impacted the Newport News segment’s revenue performance.

The Zacks Consensus Estimate for the Newport News unit’s revenues is pegged at $1.64 billion, which indicates a decline of 1.7% from the year-ago quarter’s figure.

HII’s Mission Technologies Unit Likely to Have Witnessed Growth

Higher sales volumes from C5ISR and cyber, electronic, warfare and space (CEW&S) contracts are likely to have aided the Mission Technologies segment’s revenue performance.

Q4 Estimates for HII

Weak sales in two of Huntington Ingalls’ business segments are likely to have dragged down its overall revenues.

The Zacks Consensus Estimate for HII’s fourth-quarter sales is pegged at $3.03 billion, which indicates a decrease of 4.6% from the prior-year number.

Weak sales growth expectations are likely to have impacted the company’s earnings performance. Additionally, unimpressive program performance as a result of workforce inexperience and delays with the supply chain are expected to have further impacted its overall bottom line.

The Zacks Consensus Estimate for HII’s fourth-quarter earnings is pegged at $3.28 per share, which indicates a year-over-year decline of 52.5%.

What the Zacks Model Unveils for HII

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 odds of an earnings beat, which is the case here, as you will see below.

Earnings ESP: Huntington Ingalls has an Earnings ESP of +8.35%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: HII currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Below we have mentioned the following players from the same sector that also have the right combination of elements to beat on earnings in the upcoming releases.

Leidos Holdings, Inc. LDOS is set to report fourth-quarter 2024 earnings on Feb. 11, 2025, before market open. It has an Earnings ESP of +12.08% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for LDOS’ earnings is pegged at $2.18 per share, implying an improvement of 9.6% from the year-ago quarter’s figure. The consensus estimate for its sales is pegged at $4.12 billion, indicating year-over-year growth of 3.6%.

CurtissWright CW is set to report its fourth-quarter results on Feb. 12, after market close. It has an Earnings ESP of +1.24% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for CW’s earnings is pegged at $3.08 per share. The consensus estimate for its sales is pegged at $785.5 million.

Triumph Group TGI is set to report its third-quarter fiscal 2025 results on Feb. 10, before market open. It has an Earnings ESP of +1.03% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for TGI’s earnings is pegged at 24 cents per share, implying a significant improvement from the year-ago quarter’s number. The consensus estimate for its sales is pegged at $286.6 million, indicating year-over-year growth of 0.6%.

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