Huntington Ingalls Stock Slips Post Q3 Results, Misses Revenue Estimates - Huntington Ingalls Indus (NYSE:HII)

Huntington Ingalls Industries Inc HII reported third-quarter revenue growth of 1% year-over-year to $2.34 billion, missing the consensus of $2.38 billion.
EPS was $3.65, and Pension Adjusted EPS was $3.58, beating the consensus of $2.99.
Revenues by segments: Ingalls Shipbuilding $628 million (-7% Y/Y), Newport News Shipbuilding $1.35 billion (-0.3% Y/Y), and Technical Solutions $394 million (+23.1% Y/Y).
The operating income declined 46.8% Y/Y to $118 million, and the margin contracted by 455 bps to 5%.
Segment operating income was $163 million, compared to $162 million a year ago, and the margin was flat at 7%.
Segment operating margins: Ingalls Shipbuilding 9.9% (up 69 bps), Newport News Shipbuilding 6.5% (up 68 bps), and Technical Solutions 3.3% (down 326 bps).
Huntington Ingalls generated cash from operating activities of $350 million in the quarter compared to $222 million a year ago. Free cash flow of $277 million.
The total backlog was $50.1 billion as of Sept. 30, 2021, with new contract awards of $600 million in Q3.
FY21 Outlook: Huntington Ingalls Industries expects Shipbuilding Revenue of ~$8.2 billion (prior $8.2 billion - $8.4 billion), Shipbuilding Operating Margin outlook unchanged at 7.5% - 8%.
It expects Technical Solutions Revenue of ~$1.4 billion (prior ~$1 billion) and Technical Solutions Segment Operating Margin of ~2.5% (prior 3% - 5%), Technical Solutions EBITDA Margin ~8% (prior 7% - 9%).
The company expects a Free Cash Flow of $300 million - $350 million (prior outlook $150 million - $250 million).
Price Action: HII shares are trading lower by 3.33% at $193.3 on the last check Thursday.

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