Huntington Ingalls Industries, Inc. HII is slated to report its third-quarter 2023 results on Nov 2 before market open.
Huntington Ingalls delivered an earnings surprise of 4.14% in the last reported quarter. Strong revenue performance across its business segments is expected to have added impetus to HII’s overall third-quarter top line.
Ingalls’ Revenue Growth Likely to Improve
Higher revenues from surface combatants are likely to have contributed to this segment’s revenue performance in the third quarter. However, the upside may have been partially offset by lower revenues from the National Security Cutter program.
The Zacks Consensus Estimate for Ingalls’ third-quarter revenues, pegged at $635.7 million, suggests growth of 2% from the year-ago quarter’s reported figure.
Newport to Remain Strong
Higher revenues from aircraft carriers and submarines may have contributed to the Newport segment’s revenues in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for Newport’s third-quarter revenues, pegged at $1,484.7 million, indicates growth of 2.8% from the year-ago quarter’s reported figure.
Mission Technologies to Witness Growth Momentum
Higher volumes of mission-based solutions are likely to have aided Mission Technologies’ revenue performance in the third quarter of 2023.
The Zacks Consensus Estimate for Mission Technologies’ third-quarter revenues, pegged at $631.2 million, suggests an increase of 6.1% from the year-ago quarter’s reported figure.
Third-Quarter Estimates
Expected growth across all its business segments’ revenues may have boosted the company’s overall top line in the third quarter.
The Zacks Consensus Estimate for third-quarter sales is pegged at $2.73 billion. This indicates an increase of 3.9% from the prior-year reported figure.
A strong top line is likely to have contributed to HII’s third-quarter bottom line. However, macroeconomic challenges like higher inflation, supply-chain challenges and a tight labor market may have adversely impacted overall earnings in the third quarter of 2023.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $3.39 per share. This implies a decline of 1.45% from the prior-year reported figure.
Huntington Ingalls Industries, Inc. Price and EPS Surprise
Huntington Ingalls Industries, Inc. price-eps-surprise | Huntington Ingalls Industries, Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Huntington Ingalls 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, which is not the case here.
Huntington Ingalls has an Earnings ESP of -0.01% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are three defense players you may want to consider as these have the right combination of elements to post an earnings beat this season:
Virgin Galactic SPCE has an Earnings ESP of +5.21% and a Zacks Rank #2. The long-term earnings growth rate of LHX is 40.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Virgin Galactic’s third-quarter earnings, pegged at a loss of 42 cents per share, indicates an improvement from the prior-year reported figure. The Zacks Consensus Estimate for SPCE’s sales suggests a growth rate of 42.9% from the prior-year reported figure.
Spire Global, Inc. SPIR has an Earnings ESP of +20.61% and a Zacks Rank #3. The company delivered an earnings surprise of 30.00% in the last reported quarter.
The Zacks Consensus Estimate for Spire’s third-quarter earnings, pegged at a loss of 66 cents per share, indicates a decline from the prior-year reported figure. The Zacks Consensus Estimate for SPIR’s sales implies a growth rate of 26.2% from the prior-year reported figure.
Curtiss-Wright Corporation CW has an Earnings ESP of +0.17% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter sales is pegged at $684.9 million. This indicates an increase of 8.6% from the prior-year reported figure.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $2.42 per share, calling for an upside of 16.9% from the prior-year reported figure. The company delivered an earnings surprise of 9.14% in the last reported quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
