HII Stock Fair Value Calculation – Huntington Ingalls Industries Reports Lower-Than-Expected Q4 2023 GAAP EPS of $3.07.
February 11, 2023
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HII Stock Fair Value Calculation – Huntington Ingalls Industries ($NYSE:HII) reported lower-than-expected Q4 2023 GAAP EPS of $3.07. This figure was a shortfall of $0.23 compared to market expectations. Huntington Ingalls Industries is a premier military shipbuilder and a leader in the design, construction, and life-cycle support of nuclear- and conventionally-powered ships for the United States Navy, Coast Guard, and commercial customers. It is the largest US Navy shipbuilder and the only nuclear shipbuilder. The company also provides professional services through its government services and technical solutions business segment.
Huntington Ingalls attributed the lower-than-expected EPS to increased operating costs related to increased volume and higher labor costs. Despite the lower-than-expected earnings, Huntington Ingalls reported strong performance in its core shipbuilding operations. The company also reported higher sales in its government services and technical solutions business, which was up 3 percent year over year. In conclusion, despite the lower-than-expected Q4 GAAP EPS, Huntington Ingalls showed strong results in its core businesses, indicating that its long-term outlook remains positive. The company’s strategic initiatives should help it reach its long-term goals and build on its successes.
Price History
On Thursday, Huntington Ingalls Industries announced that its fourth-quarter 2023 GAAP earnings per share (EPS) was lower than expected at $3.07, a decrease of 2.3% from the prior closing price of 225.7. This news came as a surprise to many and has resulted in a collective negative sentiment towards the company. Since the announcement, stock prices for Huntington Ingalls Industries have opened at $221.0 and closed at $220.4. This marks a 2.3% decrease from the closing price of 225.7 prior to the announcement, indicating investors’ lack of confidence in the company’s projected performance in the upcoming quarter. Although the news has been mostly negative, Huntington Ingalls Industries is taking active steps to ensure their future success, including cost optimization and strategic capital investments.
In addition to these efforts, Huntington Ingalls Industries is dedicated to maintaining the highest standards of operational excellence, ensuring customer satisfaction and delivering value to shareholders. The company is striving to remain competitive in the ever-changing market by focusing on innovation and investing in new technologies and capabilities. Despite the recent news, Huntington Ingalls Industries remains committed to creating sustainable shareholder value and providing a safe and rewarding workplace for their team members. The company is confident that their continued efforts will help them achieve long-term success and create a bright future for their investors, customers and team members alike. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for HII. More…
| Total Revenues | Net Income | Net Margin |
| 10.68k | 579 | 5.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for HII. More…
| Operations | Investing | Financing |
| 766 | -268 | -658 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for HII. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 10.86k | 7.37k | 76.39 |
Key Ratios Snapshot
Some of the financial key ratios for HII are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.3% | -11.4% | 7.7% |
| FCF Margin | ROE | ROA |
| 4.5% | 15.7% | 4.7% |
Analysis – HII Stock Fair Value Calculation
GoodWhale’s analysis of Huntington Ingalls Industries (HII) fundamentals has revealed a fair value of around $212.6 per share. This calculation is based on our proprietary Valuation Line, which takes into account multiple factors, such as the company’s financial performance, market dynamics, and industry trends. Currently, HII stock is traded at $220.4, meaning it is overvalued by 3.7%. HII is a leading builder of warships and has strong fundamentals. It has generated solid revenue and earnings growth over the past five years and boasts a solid balance sheet. It has also made significant investments in technology to remain competitive in the industry. Moreover, HII has a wide customer base, with both domestic and international clients. Overall, GoodWhale’s analysis suggests that HII has strong fundamentals, making it an attractive investment option. However, investors should be aware that HII is currently slightly overvalued and will need to do more research to make sure that the stock is a good fit for their portfolio. More…
Peers
The competition between Huntington Ingalls Industries Inc and its competitors is fierce. Each company is trying to gain market share and increase profits. The competition is good for consumers because it keeps prices down and forces companies to innovate.
– Textron Inc ($NYSE:TXT)
Textron Inc is a publicly traded company with a market cap of 12.89B as of 2022. The company has a return on equity of 9.94%. Textron Inc is a diversified industrial company that operates in a variety of businesses, including aircraft, defense, industrial and commercial products. The company’s products include Bell helicopters, Cessna aircraft, and E-Z-Go golf carts.
– Penguin International Ltd ($SGX:BTM)
Penguin International Ltd is a Singapore-based company that is engaged in the design, manufacture, and marketing of a range of inflatable products, including inflatable boats, marine products, and industrial products. The company has a market capitalization of 160.72 million as of 2022 and a return on equity of 7.36%. Penguin International Ltd is a leading provider of inflatable products and solutions with a strong focus on quality, innovation, and customer service. The company has a wide range of products that are suitable for a variety of applications, including recreation, fishing, diving, rescue, and industrial.
– Airbus SE ($OTCPK:EADSF)
Airbus SE is a leading aircraft manufacturer with a market cap of 78.35B as of 2022. The company has a strong Return on Equity of 34.09%. Airbus SE is known for its innovative aircraft designs and manufacturing capabilities. The company has delivered over 11,000 aircraft to over 500 operators worldwide.
Summary
Huntington Ingalls Industries reported lower-than-expected fourth quarter 2023 GAAP EPS of $3.07, indicating a potential decline in stock value for the company. Despite the negative news, it is important for investors to consider the long-term prospects of the company. Huntington Ingalls Industries has a strong history of financial growth and is a major player in the military shipbuilding and services industry.
Analysts believe that despite the recent downturn, the company’s long-term prospects remain strong, and it may be an attractive investment option. Investors should evaluate current market conditions and financial information to make an informed decision about investing in Huntington Ingalls Industries.
