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Newport News, Virginia-based Huntington Ingalls Industries, Inc. (HII) designs, builds, overhauls, and repairs military ships in the U.S. With a market cap of $10.1 billion, the company operates through Ingall, Newport News, and Mission Technologies segments. It is expected to announce its Q2 earnings before the market opens on Thursday, August 1.
Ahead of the event, analysts expect Huntington Ingalls to report a profit of $3.59 per share, up 9.8% from $3.27 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS projections over the past four quarters. Its EPS for the last reported quarter grew 19.8% to $3.87, exceeding the consensus estimates by 10.6%. At the same time, its sales rose by 4.9% compared to the prior-year quarter.
In fiscal 2024, analysts expect Huntington Ingalls to report an EPS of $16.35, down 4.2% from $17.07 in fiscal 2023. However, its fiscal 2025 EPS is projected to grow 16% annually to $18.96.
HII stock is down 1.6% on a YTD basis, substantially underperforming the S&P 500 Index’s ($SPX) 18.1% gains and the S&P 500 Industrial Sector SPDR’s (XLI) 9.7% returns over the same time frame.
Despite the global rise in military spending, HII stock has underperformed the broader market in 2024 due to shipyard labor issues and other macroeconomic headwinds. However, demand for submarines and aircraft carriers is surging, fueled by China's expanding naval footprint and high global tensions, which should bode well for the shipbuilding giant.
Huntington Ingalls stock fell by 11.5% after the release of its Q1 results on May 2. Despite surpassing its top and bottom-line estimates, the market was not happy with its weak profit margins.
Nonetheless, the company repurchased stock worth of $62 million in Q1, demonstrating its commitment toward shareholders.
The consensus opinion on Huntington Ingalls stock is moderately bullish, with a “Moderate Buy” rating overall, a step up from the “Hold” rating two months before. Out of the nine analysts covering the stock, four recommend a “Strong Buy,” three advise a “Hold,” one suggests a “Moderate Sell,” and the remaining analyst gives a “Strong Sell” rating.
The average target price for Huntington Ingalls is $270, indicating a potential upside of 5.7% from the current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
