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Huntington Ingalls Industries, Inc. HII is scheduled to release first-quarter 2025 earnings on May 1, 2025, before market open.
The company has a four-quarter average negative earnings surprise of 0.84%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Dismal sales growth expectations, along with weak operating margin performance, are projected to have impacted HII’s overall bottom line.
Anticipated Growth in Revenues in HII’s Ingalls Unit
Higher revenues from surface combatants are likely to have boosted the Ingalls segment’s top line in the first quarter.
The Zacks Consensus Estimate for the Ingalls unit’s revenues is pegged at $663.3 million, which indicates growth of 1.3% 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 Improvement
Higher sales volumes from the Columbia class submarine program, along with solid volumes from naval nuclear support services, are likely to have boosted the Newport News segment’s revenue performance. However, dismal performance of the Virginia-class aircraft carrier is likely to adversely impact overall top-line results.
HII’s Mission Technologies Unit Likely to Post Dismal Performance
Lower sales volumes from C5ISR (Command, Control, Computers, Communications, Cyber, Intelligence, Surveillance and Reconnaissance) due to the absence of non-recurring product revenues are likely to have negatively impacted the company’s Mission Technologies segment revenues in the first quarter of 2025.
The Zacks Consensus Estimate for this unit’s revenues is pegged at $0.69 billion, which indicates a decline of 8.7% from the year-ago quarter’s figure.
Q1 Estimates for HII
Sales decline anticipated at the company’s Mission Technologies segment is likely to have outweighed the positive sales growth return from its Ingalls and Newport News segments might have weighed on its overall first-quarter revenue performance.
The Zacks Consensus Estimate for HII’s first-quarter sales is pegged at $2.79 billion, which indicates a decrease of 0.6% from the prior-year number.
Lower operating margins in the majority of its segments, owing to unimpressive program performance as a result of labor inexperience and delays due to supply-chain disruptions, are likely to have hurt its earnings in the first quarter of 2025. Additionally, dismal sales growth expectations are projected to have further impacted its overall bottom line.
The Zacks Consensus Estimate for HII’s first-quarter earnings is pegged at $2.90 per share, which indicates a year-over-year decline of 25.1%.