Huntington Ingalls Industries (HII) Quarterly Earnings Preview and Dividend Increase
Huntington Ingalls Industries (NYSE: HII) is a major American shipbuilding company and a provider of professional services to partners in government and industry. It is the largest military shipbuilding company in the United States and a significant player in the defense sector. HII’s main competitors include General Dynamics and Lockheed Martin, which also operate in the defense and aerospace industries.
HII is set to release its quarterly earnings on Thursday, October 31, 2024. Wall Street estimates the earnings per share to be $3.84, with projected revenue of approximately $2.87 billion. The company is expected to report strong third-quarter results, driven by robust sales across most of its business segments, particularly in its shipbuilding division, as highlighted by the improved margins.
The company has announced an increase in its quarterly cash dividend to $1.35 per share, a $0.05 rise from the previous $1.30 per share. This increased dividend will be distributed on December 13, 2024, to shareholders recorded as of November 29, 2024. This move reflects HII’s confidence in its financial stability and its commitment to returning value to shareholders.
HII’s financial metrics provide further insights into its market position. The company has a price-to-earnings (P/E) ratio of approximately 13.4, indicating the market’s valuation of its earnings. Its price-to-sales ratio stands at about 0.85, suggesting how much investors are willing to pay per dollar of sales. The enterprise value to sales ratio is around 1.09, reflecting the company’s total valuation relative to its sales.
The enterprise value to operating cash flow ratio is approximately 18.69, providing insight into the company’s cash flow generation relative to its valuation. HII has an earnings yield of about 7.46%, indicating the return on investment. The debt-to-equity ratio is approximately 0.64, showing the proportion of debt used to finance the company’s assets relative to equity. Lastly, the current ratio is around 0.82, indicating the company’s ability to cover its short-term liabilities with its short-term assets.
