Bank of America Merrill Lynch Maintains Underperform on Huntington Ingalls Industries

Bank of America Merrill Lynch is out with its report today on Huntington Ingalls Industries HII, maintaining Underperform. In its report, Bank of America Merrill Lynch writes, "HII reported 2Q EPS of $0.80, above BofAMLe of $0.78 but below the First Call mean of $0.82. Revenues of $1,563mn were down 2.9% Y/Y, and came in below our forecast of $1,708mn. Operating margins of 5.8% were up 706bps from last year's -1.2% print. Excluding the non-recurring $113mn pre-tax charge in 2Q10 related to Avondale, 2Q10 operating margins were 5.4%. We note that the tax rate this quarter was lighter than we were expecting and contributed $0.01-$0.02 to EPS." Bank of America Merrill Lynch maintains a $32 PO on HII. At the time of posting, shares of HII were trading at $27.70, down 1.11% from Wednesday's close.