Huntington Ingalls Industries (NYSE: HII) exceeded the consensus analyst outlook for earnings per share in its second quarter financial statement released before U.S. financial markets opened Thursday with revenue down on lower volume on aircraft carrier and submarine activity.
Military shipbuilder and GovCon Index-listed company Huntington Ingalls reported second quarter earnings at $2.80 per share to top Wall Street’s forecast of $2.32 with net income down 14.74 percent from the prior year period to $133 million.
Revenue fell 2.3 percent year-over-year to $1.7 billion versus analyst expectations of $1.74 billion on lower activity in the company’s contracts to construct the USS Gerald R. Ford aircraft carrier and carry out the refueling and complex overhaul of the USS Abraham Lincoln.
The Newport News, Virginia-based company said its headwinds for the year’s second half include continued work on the Gerald R. Ford’s test program to prepare for sea trials and eventual delivery, plus efforts to deliver the USS John Finn surface combatant ship to the Navy and National Security Cutter Munro to the Coast Guard.
Decreased volumes in block three of the Virginia-class submarine program also drove the sales decline, HII said.
As of Wednesday’s close, shares in Huntington Ingalls have climbed 36.07 percent since the start of 2016 and have risen 50.43 percent over 12 months.
The GovCon Index is up 8.06 percent on a year-to-date basis.