MCLEAN, Va. - HII (NYSE: HII), a global defense and technology company, has delivered two REMUS 620 uncrewed underwater vehicles (UUVs) to the National Oceanic and Atmospheric Administration (NOAA) for high-resolution ocean floor mapping, the company announced today. The REMUS 620, a medium-class UUV, was first introduced in November 2022 and is designed to provide extensive capabilities for both above and below water over long distances.
The delivery of the REMUS 620 to NOAA comes less than two years after the model was unveiled, showcasing HII's rapid development and deployment capabilities. Duane Fotheringham, president of HII's Mission Technologies Unmanned Systems business group, emphasized the company's commitment to meeting customer needs quickly with advanced technology.
The REMUS 620 vehicles feature a modular design and have been customized for NOAA with enhancements tailored for underwater mapping and habitat restoration projects. These upgrades include a synthetic aperture sonar module, an additional energy module, and various auxiliary equipment.
NOAA plans to deploy the REMUS 620 UUVs in the Gulf of Mexico to assist in the restoration of deep-sea habitats affected by the 2010 Deepwater Horizon oil spill. These vehicles are expected to expedite NOAA's environmental restoration and exploration missions, complementing the agency's ongoing efforts in marine archaeology and oceanographic research.
HII's REMUS UUVs have seen significant market interest, with Fotheringham noting the substantial backlog of orders for the REMUS 300 model as well. To date, over 600 REMUS UUVs are operational in more than 30 countries, including 14 NATO member states. The longevity of these vehicles is notable, with over 90% of those delivered in the past 23 years still in use, a testament to their durability and the ability to integrate new technologies.
HII, headquartered in Virginia, has a workforce of 44,000 and provides a range of defense solutions, including military shipbuilding and various unmanned systems. The information for this report is based on a press release statement from HII.
In other recent news, Huntington Ingalls Industries (NYSE:HII) has made significant strides in its financial performance and contract acquisitions. The company's second-quarter revenue for 2024 reached a record $3 billion, marking a 6.8% increase over the previous year, and its diluted earnings per share rose to $4.38 from $3.27 in the same quarter of 2023. New contract awards for the quarter amounted to $3.1 billion, contributing to a robust backlog of contracts worth $48.5 billion.
JPMorgan (NYSE:JPM) has adjusted its stance on HII, shifting the rating from "Overweight" to "Neutral" due to concerns about near-term confidence, despite the strong demand for Navy ships. The firm also increased its price target for the company's stock to $285, up from the previous $280.
In addition, HII secured significant contracts recently. The company was awarded a task order exceeding $30 million to support the U.S. Air Force's presidential and executive aircraft fleet, and a $209 million contract for the support of the U.S. Air Force's fighter and bomber weapons systems.
These are the recent developments for HII, which continues to demonstrate robust financial performance and secure significant contracts.
InvestingPro Insights
As HII (NYSE: HII) continues to secure its position in the defense and technology sectors with the delivery of advanced unmanned underwater vehicles to NOAA, investors may find the company's financial health and market performance of particular interest. HII's commitment to innovation and customer satisfaction is evident in their product development and delivery timelines. Reflecting on the company's financial metrics, HII boasts a market capitalization of $10.54 billion, demonstrating its substantial presence in the industry.
Investors looking to gauge the company's valuation might note that HII is trading at a P/E ratio of 14.27, suggesting a potentially attractive valuation relative to its near-term earnings growth. This is further emphasized by a PEG ratio of 0.31 over the last twelve months as of Q2 2024, indicating that the stock might be undervalued when considering its earnings growth rate.
With a consistent track record of dividend payments, HII has raised its dividend for 13 consecutive years, which could be appealing for income-focused investors. The dividend yield as of late 2024 stands at 1.93%, coupled with a dividend growth of 4.84% over the last twelve months as of Q2 2024. Such financial commitments to shareholders may reflect the company's confidence in its long-term stability and profitability.
While HII has shown a strong revenue growth of 8.04% over the last twelve months as of Q2 2024, it's important to note that five analysts have revised their earnings expectations downwards for the upcoming period. This might suggest that while the company is expanding its revenue, there are concerns about its future earnings potential. Additionally, it's worth mentioning that the company has maintained profitability over the last twelve months, which aligns with analyst predictions that HII will remain profitable this year.
For those interested in exploring further insights and metrics about HII, InvestingPro offers additional tips that can help investors make informed decisions. For more details and to access a comprehensive list of InvestingPro Tips, visit https://www.investing.com/pro/HII.
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