Huntington Ingalls Industries, Inc. (HII) has been seeing its share price rising 4.37% to $175.00 in premarket trading today. The largest military shipbuilding company of the United States, this morning announced its Q4 and full-year 2020 results.
What the company do?
Being America’s largest shipbuilder, Huntington Ingalls Industries provides likewise services to partners in government and industry. A combined team of America’s greatest naval shipbuilders with its Newport News and Ingalls divisions in Virginia and Mississippi has built more ships in more classes than any other American marine shipbuilder in more than a century. With Nuclear and Environmental services and services that support national security missions across the globe, HII’s Technical Solutions division supports national security missions worldwide.
How did the new results come about?
Based on its latest quarterly data, HII reported revenues of over $2.8 billion in the fourth quarter of 2020, up 14.3 percent from the year-ago quarter. The quarter ended in $305 million in net revenue and an 11.1 percent operating margin, compared to $186 million and 7.7 percent in the fourth quarter of the previous year. For the quarter, adjusted earnings per share were $6.15, compared to $3.61 in the same period last year.
On an annualized basis, revenues of $9.4 billion increased 5.2% over the previous year. In 2020, the company generated $799 million in operating income, while operating margin remained 8.5%, compared to $736 million and 8.3%, respectively, in 2019. After adjustments, earnings per share for the full year were $17.14 compared to $13.26 in the previous year. Based on 2020 financials, free cash flow was $757 million, and cash from operations amounted to $1.1 billion, compared with $460 million and $896 million, respectively, in 2019. As of Dec. 31, 2020, there was approximately $46.0 billion in backlog as a result of new contracts worth $3.5 billion.