Huntington Ingalls Industries, Inc. (NYSE:HII) Increases Dividend to $1.41 Per Share

Key Points

• Huntington Ingalls Industries raised its quarterly dividend 2.2% to $1.41 per share, payable December 11 to shareholders of record November 27. The increase marks the company’s 13th consecutive year of dividend growth, with the payout supported by earnings.
• HII reported quarterly results above expectations, posting $5.27 in EPS versus the $3.79 consensus and revenue of $3.42 billion, up 10.9% year over year.
• Shares rose 0.7% to $274.13, while the company continued to benefit from U.S. Navy demand, including a $99.1 million contract modification for DDG 1002 sea trials and the appointment of former CEO Mike Petters to its board.

Huntington Ingalls Industries, Inc. (NYSE:HII - Get Free Report) declared a quarterly dividend on Wednesday, October 21st. Shareholders of record on Friday, November 27th will be given a dividend of $1.41 per share by the aerospace company on Friday, December 11th. This represents a $5.64 annualized dividend and a yield of 2.1%. The ex-dividend date is Friday, November 27th. This is a 2.2% increase from Huntington Ingalls Industries's previous quarterly dividend of $1.38.

Huntington Ingalls Industries has increased its dividend payment by an average of 0.1% per year over the last three years and has increased its dividend every year for the last 13 years. Huntington Ingalls Industries has a dividend payout ratio of 33.1% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Huntington Ingalls Industries to earn $20.83 per share next year, which means the company should continue to be able to cover its $5.52 annual dividend with an expected future payout ratio of 26.5%.

Huntington Ingalls Industries Stock Up 0.7%

Shares of NYSE:HII traded up $1.91 on Wednesday, reaching $274.13. The company had a trading volume of 459,481 shares, compared to its average volume of 526,519. The stock has a market capitalization of $10.80 billion, a P/E ratio of 16.34, a P/E/G ratio of 1.01 and a beta of 0.21. The stock has a 50-day moving average price of $282.28 and a 200 day moving average price of $306.87. Huntington Ingalls Industries has a twelve month low of $255.35 and a twelve month high of $460.00. The company has a quick ratio of 1.14, a current ratio of 1.23 and a debt-to-equity ratio of 0.51.

Huntington Ingalls Industries (NYSE:HII - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The aerospace company reported $5.27 EPS for the quarter, beating analysts' consensus estimates of $3.79 by $1.48. Huntington Ingalls Industries had a return on equity of 12.89% and a net margin of 5.01%. The business had revenue of $3.42 billion for the quarter, compared to analyst estimates of $3.15 billion. During the same quarter in the prior year, the firm posted $3.86 EPS. The firm's revenue for the quarter was up 10.9% on a year-over-year basis. On average, equities analysts expect that Huntington Ingalls Industries will post 18.47 EPS for the current year.

Key Headlines Impacting Huntington Ingalls Industries

Here are the key news stories impacting Huntington Ingalls Industries this week:

• Positive Sentiment: HII raised its quarterly dividend to $1.41 per share from $1.38, an increase of approximately 2.2%. The dividend is payable Dec. 11 to shareholders of record on Nov. 27, signaling management’s continued confidence in cash generation and shareholder returns. HII Increases Quarterly Dividend to $1.41 per Share
• Positive Sentiment: HII’s Ingalls Shipbuilding division received a $99.1 million contract modification from the U.S. Navy for DDG 1002 sea trials. The award adds near-term backlog and reinforces the company’s role in the Navy’s fleet-modernization efforts, supporting the long-term outlook for naval shipbuilding revenue. Can DDG 1002 Sea Trials Support HII’s Naval Shipbuilding Growth?
• Positive Sentiment: Former CEO and President Mike Petters was elected to HII’s board. His extensive shipbuilding and Navy-related experience could provide strategic guidance as the company expands capacity and supports additional U.S. defense programs. Former HII CEO Mike Petters Joins Board of Directors
• Neutral Sentiment: HII will host an event highlighting production of the ROMULUS unmanned surface vessel for the Navy. The event emphasizes the company’s unmanned maritime capabilities, although it does not represent a new contract or immediate financial guidance. HII to Host Celebration of ROMULUS USV Production

About Huntington Ingalls Industries

Huntington Ingalls Industries, Inc NYSE: HII is an American defense company that designs, builds, maintains and modernizes ships for the U.S. Navy and other government customers. Its shipbuilding activities include nuclear-powered aircraft carriers, submarines, amphibious assault ships, destroyers and other surface vessels, along with fleet sustainment and modernization services.

HII operates through its Newport News Shipbuilding and Ingalls Shipbuilding divisions. Newport News Shipbuilding is involved in the construction and maintenance of nuclear-powered aircraft carriers and submarines, while Ingalls Shipbuilding builds surface combatants and amphibious ships.

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