Huntington Ingalls Industries, Inc.’s HII fourth-quarter 2023 earnings of $6.90 per share increased a solid 124.8% from $3.07 reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of $4.27 by 61.6%.

For 2023, the company recorded earnings of $17.07 per share, which increased 18.2% from the year-ago figure of $14.44. The full-year bottom line also comfortably beat the consensus estimate of $14.47.

Total Revenues

Revenues for the quarter totaled $3,177 million, which beat the Zacks Consensus Estimate of $2,758.2 million by 15.2%. The top line increased 13% from $2,812 million recorded in the year-ago quarter, driven by higher volumes from all three segments of the company.

For 2023, HII generated revenues of $11.45 billion, which increased 7.3% from the year-ago figure of $10.68 billion. The full-year top line also beat the Zacks Consensus Estimate of $11.04 billion.

Huntington Ingalls Industries, Inc. Price, Consensus and EPS Surprise

Huntington Ingalls Industries, Inc. price-consensus-eps-surprise-chart | Huntington Ingalls Industries, Inc. Quote

Operational Performance

Huntington Ingalls reported segment operating income of $330 million compared with $145 million in the fourth quarter of 2022. The company’s segment operating margin expanded 520 basis points from the prior-year quarter’s figure to 10.4%.

HII received orders worth $12.5 billion in 2023. As a result, its total backlog reached $48.1 billion as of Dec 31, 2023.

Segmental Performance

Newport News Shipbuilding: Revenues totaled $1,665 million in this segment, up 5.1% year over year due to higher volumes in aircraft carrier construction as well as engineering and submarines.

The segment reported operating earnings of $110 million in the quarter, up 37.5% year over year, backed by higher volumes, a revenue adjustment on the RCOH of USS George Washington (CVN 73), and revenue and contract adjustments on aircraft carrier programs.

Ingalls Shipbuilding: Revenues in this segment totaled $800 million, up 21.6% year over year, primarily driven by higher volumes in amphibious assault ships and surface combatants.

The segment’s operating income of $169 million increased 238% year over year, partly driven by higher volumes and contract incentives on Arleigh Burke-class (DDG 51) destroyers.

Mission Technologies: Revenues in this segment totaled $745 million, up 23.8% year over year. The upside was primarily driven by growth in the C5ISR program.

The operating income soared 240% year over year to $51 million. The increase in the segment’s operating income was driven by higher volumes and the settlement of representations and warranties insurance claims related to the acquisition of Hydroid.