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Sep 30, 2020
Huntington Ingalls Q3 2020 Earnings Report
Huntington Ingalls reported increased revenues and earnings per share in Q3 2020.
Key Takeaways
Huntington Ingalls Industries reported a 4.3% increase in revenues to $2.3 billion and diluted earnings per share of $5.45, compared to $3.74 in the same period of 2019. The increase in revenue was driven by growth at both HII's Newport News and Ingalls Shipbuilding divisions. New contract awards in the quarter were approximately $1.6 billion, bringing total backlog to approximately $45.3 billion as of Sept. 30, 2020.
Revenues were $2.3 billion in the quarter, up 4.3% from Q3 2019.
Operating margin was 9.6%.
Diluted earnings per share was $5.45, compared to $3.74 in the same period of 2019.
Backlog of $45.3 billion as of Sept. 30, 2020.
Revenue by Segment
Forward Guidance
Huntington Ingalls Industries provided the following financial outlook for 2020:
Positive Outlook
- Expect FY20 shipbuilding revenue of approximately $7.9 billion
- Expect FY20 shipbuilding operating margin between 5.5% and 6.5%
- Expect FY20 Technical Solutions revenue of approximately $1.25 billion and segment operating margin of approximately 2.6%
- Expect FY20 free cash flow of >$500 million
- Expect cumulative FY20 and FY21 free cash flow of approximately $900 million
Challenges Ahead
- The COVID-19 global pandemic has had wide ranging effects on the global health environment and disrupted the global and U.S. economies and financial markets.
- The pandemic is also impacting our operations, and the full impacts of COVID-19 on our fiscal year 2020 financial results and beyond are uncertain.
- Continued lower staffing levels and lower employee productivity could impact our ability to achieve anticipated milestones and further affect our 2020 financial results and beyond.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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