Melius Research Issues Positive Forecast for HII Earnings

Key Points

• Melius Research raised Huntington Ingalls Industries’ Q3 2026 EPS forecast to $4.15 from $4.06, while projecting $5.02 for Q4 2026 and $20.94 for fiscal 2027.
• HII recently beat quarterly expectations, reporting $5.27 EPS versus the $3.79 consensus and $3.42 billion in revenue, up 10.9% year over year.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $367.12, while institutional investors own 90.46% of the company and HII pays a quarterly dividend of $1.38.

Huntington Ingalls Industries, Inc. (NYSE:HII - Free Report) - Research analysts at Melius Research increased their Q3 2026 earnings estimates for shares of Huntington Ingalls Industries in a note issued to investors on Monday, October 5th. Melius Research analyst S. Mikus now expects that the aerospace company will earn $4.15 per share for the quarter, up from their prior estimate of $4.06. The consensus estimate for Huntington Ingalls Industries' current full-year earnings is $18.47 per share. Melius Research also issued estimates for Huntington Ingalls Industries' Q4 2026 earnings at $5.02 EPS and FY2027 earnings at $20.94 EPS.

Huntington Ingalls Industries (NYSE:HII - Get Free Report) last released its earnings results on Thursday, July 30th. The aerospace company reported $5.27 earnings per share (EPS) for the quarter, beating the consensus estimate 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 company had revenue of $3.42 billion during the quarter, compared to analyst estimates of $3.15 billion. During the same period in the prior year, the company posted $3.86 earnings per share. Huntington Ingalls Industries's quarterly revenue was up 10.9% on a year-over-year basis.

A number of other research analysts have also recently weighed in on the stock. Wolfe Research upgraded shares of Huntington Ingalls Industries from a "peer perform" rating to an "outperform" rating and set a $364.00 target price on the stock in a research note on Friday, July 31st. Weiss Ratings raised Huntington Ingalls Industries from a "hold (c)" rating to a "hold (c+)" rating in a report on Monday, August 31st. TD Cowen decreased their target price on Huntington Ingalls Industries from $420.00 to $360.00 and set a "buy" rating for the company in a research report on Monday, July 13th. Citigroup upped their price target on Huntington Ingalls Industries from $349.00 to $379.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Finally, Sanford C. Bernstein lowered their price objective on Huntington Ingalls Industries from $341.00 to $327.00 and set a "market perform" rating on the stock in a research note on Wednesday, September 23rd. Five analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $367.12.

Huntington Ingalls Industries Price Performance

Shares of NYSE:HII opened at $260.08 on Thursday. Huntington Ingalls Industries has a fifty-two week low of $256.79 and a fifty-two week high of $460.00. The company's 50-day moving average is $292.72 and its 200 day moving average is $314.76. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.14 and a current ratio of 1.23. The company has a market capitalization of $10.25 billion, a P/E ratio of 15.50, a price-to-earnings-growth ratio of 0.99 and a beta of 0.21.

Institutional Trading of Huntington Ingalls Industries

Institutional investors and hedge funds have recently bought and sold shares of the company. Steph & Co. purchased a new position in shares of Huntington Ingalls Industries during the 3rd quarter valued at $452,000. Bangor Savings Bank raised its position in shares of Huntington Ingalls Industries by 2.1% in the third quarter. Bangor Savings Bank now owns 2,902 shares of the aerospace company's stock worth $775,000 after buying an additional 60 shares in the last quarter. Ridgewood Investments LLC bought a new stake in Huntington Ingalls Industries during the third quarter valued at $258,000. Eastern Bank purchased a new position in Huntington Ingalls Industries during the third quarter worth about $26,000. Finally, CX Institutional increased its stake in Huntington Ingalls Industries by 5.1% in the 3rd quarter. CX Institutional now owns 4,303 shares of the aerospace company's stock worth $1,149,000 after acquiring an additional 210 shares during the last quarter. 90.46% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at Huntington Ingalls Industries

In related news, CEO Christopher Kastner sold 13,070 shares of the business's stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $324.92, for a total transaction of $4,246,704.40. Following the completion of the transaction, the chief executive officer owned 11,224 shares of the company's stock, valued at approximately $3,646,902.08. The trade was a 53.80% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.80% of the company's stock.

Huntington Ingalls Industries Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 11th. Stockholders of record on Friday, August 28th were given a $1.38 dividend. This represents a $5.52 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date was Friday, August 28th. Huntington Ingalls Industries's dividend payout ratio (DPR) is 32.90%.

About Huntington Ingalls Industries

Huntington Ingalls Industries, Inc NYSE: HII is a U.S. defense company that designs, builds, maintains and modernizes military ships and provides technology services to government and defense customers. Its principal customers include the U.S. Navy, Marine Corps, Coast Guard, intelligence agencies and other federal organizations.

Through Newport News Shipbuilding, HII builds and services nuclear-powered aircraft carriers and supports the construction and maintenance of nuclear-powered submarines.

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