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Headquartered in Newport News, Virginia, Huntington Ingalls Industries, Inc. (HII) designs, builds, overhauls, and repairs military ships in the U.S. Valued a market cap of $10.1 billion, the company operates through Ingall, Newport News, and Mission Technologies segments. It is expected to announce its Q3 earnings before the market opens on Thursday, Oct. 31.
Ahead of the event, analysts expect Huntington Ingalls to report a profit of $3.84 per share, up 3.8% from $3.70 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS projections over the past four quarters.
In fiscal 2024, analysts expect Huntington Ingalls to report an EPS of $16.49, down 3.4% from $17.07 in fiscal 2023. However, its fiscal 2025 EPS is projected to grow 14.3% annually to $18.84.
HII stock is down 1.9% on a YTD basis, substantially underperforming the S&P 500 Index’s ($SPX) 21.8% gains and the Industrial Select Sector SPDR Fund’s (XLI) 19.1% returns over the same time frame.
On Oct. 10, HII closed down more than 2% after Wolfe Research downgraded the stock to “Peer Perform” from “Outperform.”
Although HII reported robust Q2 earnings of $4.38 per share and revenues of $2.98 billion on August 1, its shares fell 4.6%. This decline stemmed from worries about delays in critical shipbuilding programs and the postponed delivery timeline for the SSN 798 submarine, now expected in early 2025 instead of late 2024.
The consensus opinion on Huntington Ingalls stock is neutral, with a “Hold” rating overall, a step down from the “Moderate Buy” rating two months before. Out of the ten analysts covering the stock, two recommend a “Strong Buy,” six 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 $280.10, indicating a potential upside of 10% from the current price levels.
On the date of publication, Kritika Sarmah 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.
