Shares of Newport News, Va.-based Huntington Ingalls (NYSE:HII) slipped 0.6% in Wednesday trading, despite a Q2 2013 earnings report this morning that exceeded analyst estimates on both revenues and earnings.
Huntington reported earning $1.12 per diluted share on $1.68 billion in revenues in Q2. Revenues declined 2% from last year's Q2; however, operating profit margins increased 70 basis points to 6.9%. As a result, the declining revenues didn't prevent Huntington from growing net profits 12% in comparison with last year.
Huntington noted that it won $5.3 billion in new contracts in Q2, increasing total backlog of work to be done to $20.7 billion. The company's book-to-bill ratio was therefore 3.1 in the quarter. Going forward, the company can expect to receive revenues from the construction of five new DDG-51 Arleigh Burke-class guided missile destroyers and the National Security Cutter Munro (NSC-6), and also from the mothballing of the nuclear aircraft carrier USS Enterprise (CVN 65).
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Huntington Ingalls Industries. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.