HII - Embedded Expectations Analysis - 2018 01 24
ï€ Huntington Ingalls Industries, Inc. (HII:USA) currently trades at historical highs relative to UAFRS-based (Uniform) Earnings, with a 23.9x Uniform P/E, implying bullish expectations for the firm. Moreover, management is confident about products, revenue, and contractsï€ Specifically, management generated an excitement marker when saying that their capital plan supports the 300-ship Navy. Additionally, they are confident in their completed acceptance trials on DDG-114 Ralph Johnson, and in the progress made regarding the construction of CVN-79 Kennedy as the team focuses on unit outfitting and assembly in the dry dock. Furthermore, they are confident in the execution of the Technical Solutions team, and in the contract changes on CVN 65 and 72 at Newport News. They are also confident in Ingalls revenues in the quarter of $593mn, a 2.8% increase from the same period last year
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