Diversified Industrial

Huntington Ingalls

Huntington Ingalls Industries Inc. (HII) (Q3FY23) – “Hold” rating amidst improving industry tailwinds

Huntington Ingalls In Q3FY23, free cash flows totalled $244mn, contrasting with the $482mn reported in the corresponding period of the previous year. This decline was predominantly attributed to an enhancement in cash from operating activities.
SunPower Corporation
SunPower Corporation faced persistent challenges in Q3FY23, experiencing a deeper-than-anticipated contraction in customer bookings and installations. This downturn was attributed to the heightened impact of increased interest rates on consumer behaviour, exceeding earlier forecasts. Despite initial expectations for a temporary dip, these trends persisted throughout the year, exceeding anticipated duration and severity.
Honeywell
The company remains committed to its capital deployment strategy and leveraged its strong balance sheet in the third quarter by allocating $2bn to dividends, mergers and acquisitions, growth capital expenditures, and share repurchases.
NextEra Energy
NextEra Energy- Grid integration and storage solutions will be crucial battlegrounds, with companies like Tesla and ABB likely to play key roles. Mergers and acquisitions are also expected to reshape the landscape, as established players seek to diversify and newcomers aim for critical mass.
Traton
Traton continues to be challenged by the geopolitical environment and the macroeconomics are not favorable for the company anymore. The company is witnessing lower transport activities in certain regions as the trends are weakening in the global economy.