NEWPORT NEWS, Va. - Huntington Ingalls Industries (NYSE: NYSE:HII) announced a robust start to 2024, surpassing analyst expectations with first-quarter earnings per share (EPS) of $3.87, which was $0.33 higher than the consensus estimate of $3.54.
The company's revenue for the quarter reached $2.81 billion, marginally exceeding the analyst projection of $2.8 billion and marking a 4.9% increase from the first quarter of the previous year.
The company's first-quarter performance was driven by significant growth in its Mission Technologies segment, with revenues climbing to $2.8 billion, a 4.9% rise compared to the same period last year. Operating income saw a 9.2% increase to $154 million, while net earnings jumped by 18.6% to $153 million. This financial strength is reflected in the diluted EPS, which rose from $3.23 in the first quarter of 2023 to $3.87 in the current year.
Chris Kastner, HII's president and CEO, attributed the strong results to the expansion of Mission Technologies and steady shipbuilding progress, laying a solid foundation for the remainder of 2024. The company's backlog remains substantial at $48.4 billion, following new contract awards totaling $3.1 billion during the quarter.
HII has reaffirmed its financial guidance for the fiscal year 2024, maintaining its revenue outlook for Shipbuilding and Mission Technologies segments. The company's free cash flow outlook for the five-year period from 2024 to 2028 remains unchanged at $3.6 billion.
Despite the positive earnings report, the company experienced a substantial net cash outflow in operating activities, which totaled $202 million, and a negative free cash flow of $274 million. This compares to a cash outflow of $9 million and a negative free cash flow of $49 million in the first quarter of 2023.
HII is a global defense provider and the largest military shipbuilder in the nation, with a workforce of 44,000. The company's mission is to deliver powerful ships and all-domain solutions in service of national security, extending its capabilities to unmanned systems, cyber, ISR, AI/ML, and synthetic training.
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