Melius Research Analysts Cut Earnings Estimates for HII

Key Points

• Melius Research cut its Q4 2026 EPS estimate for Huntington Ingalls Industries (HII) to $4.95 from $5.05, reflecting a slightly softer near-term outlook.
• HII’s latest quarterly results beat expectations, with EPS of $3.79 versus $3.70 expected and revenue of $3.10 billion versus $3.02 billion expected.
• Analyst sentiment remains cautious overall: HII has an average rating of “Hold” and an average price target of $388.50, while the stock has been trading below its recent moving averages.

Huntington Ingalls Industries, Inc. (NYSE:HII - Free Report) - Equities researchers at Melius Research cut their Q4 2026 earnings per share (EPS) estimates for shares of Huntington Ingalls Industries in a report issued on Tuesday, May 26th. Melius Research analyst S. Mikus now anticipates that the aerospace company will post earnings of $4.95 per share for the quarter, down from their previous forecast of $5.05. The consensus estimate for Huntington Ingalls Industries' current full-year earnings is $17.32 per share. Melius Research also issued estimates for Huntington Ingalls Industries' FY2027 earnings at $20.28 EPS and FY2028 earnings at $25.00 EPS.

Huntington Ingalls Industries (NYSE:HII - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The aerospace company reported $3.79 EPS for the quarter, topping the consensus estimate of $3.70 by $0.09. The company had revenue of $3.10 billion for the quarter, compared to the consensus estimate of $3.02 billion. Huntington Ingalls Industries had a return on equity of 12.05% and a net margin of 4.71%.The company's revenue for the quarter was up 13.4% on a year-over-year basis. During the same period in the previous year, the business posted $3.79 EPS.

HII has been the topic of several other reports. Sanford C. Bernstein reaffirmed a "market perform" rating and issued a $421.00 price target on shares of Huntington Ingalls Industries in a research report on Wednesday, February 11th. Bank of America raised Huntington Ingalls Industries from an "underperform" rating to a "neutral" rating and lifted their price target for the stock from $300.00 to $400.00 in a research report on Thursday, February 12th. Weiss Ratings downgraded Huntington Ingalls Industries from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, May 6th. Citigroup dropped their price target on Huntington Ingalls Industries from $441.00 to $405.00 and set a "buy" rating on the stock in a research report on Monday, May 18th. Finally, Wall Street Zen downgraded Huntington Ingalls Industries from a "buy" rating to a "hold" rating in a research report on Monday, May 18th. Four investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat.com, Huntington Ingalls Industries presently has an average rating of "Hold" and an average target price of $388.50.

Huntington Ingalls Industries Stock Performance

Shares of NYSE HII opened at $308.10 on Monday. The company has a quick ratio of 1.11, a current ratio of 1.19 and a debt-to-equity ratio of 0.52. The business's 50 day moving average is $363.35 and its two-hundred day moving average is $372.58. The company has a market cap of $12.14 billion, a P/E ratio of 20.05, a P/E/G ratio of 1.30 and a beta of 0.23. Huntington Ingalls Industries has a 12 month low of $215.04 and a 12 month high of $460.00.

Huntington Ingalls Industries Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 12th. Stockholders of record on Friday, May 29th will be issued a dividend of $1.38 per share. This represents a $5.52 annualized dividend and a dividend yield of 1.8%. The ex-dividend date of this dividend is Friday, May 29th. Huntington Ingalls Industries's dividend payout ratio (DPR) is presently 35.91%.

Insider Transactions at Huntington Ingalls Industries

In other news, VP Edmond E. Jr. Hughes sold 3,500 shares of Huntington Ingalls Industries stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $319.58, for a total transaction of $1,118,530.00. Following the sale, the vice president owned 8,391 shares of the company's stock, valued at approximately $2,681,595.78. This trade represents a 29.43% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Eric D. Chewning sold 1,700 shares of Huntington Ingalls Industries stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $433.44, for a total value of $736,848.00. Following the sale, the executive vice president directly owned 1,949 shares in the company, valued at $844,774.56. The trade was a 46.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 9,600 shares of company stock valued at $3,714,158. 0.80% of the stock is owned by corporate insiders.

Institutional Trading of Huntington Ingalls Industries

Several institutional investors have recently modified their holdings of the company. Personal CFO Solutions LLC grew its holdings in shares of Huntington Ingalls Industries by 3.7% during the 1st quarter. Personal CFO Solutions LLC now owns 775 shares of the aerospace company's stock worth $294,000 after purchasing an additional 28 shares in the last quarter. TriaGen Wealth Management LLC boosted its stake in Huntington Ingalls Industries by 1.6% in the 4th quarter. TriaGen Wealth Management LLC now owns 1,971 shares of the aerospace company's stock valued at $670,000 after buying an additional 31 shares in the last quarter. CI Investments Inc. boosted its stake in Huntington Ingalls Industries by 16.7% in the 3rd quarter. CI Investments Inc. now owns 231 shares of the aerospace company's stock valued at $67,000 after buying an additional 33 shares in the last quarter. Intrust Bank NA boosted its stake in Huntington Ingalls Industries by 4.5% in the 4th quarter. Intrust Bank NA now owns 821 shares of the aerospace company's stock valued at $279,000 after buying an additional 35 shares in the last quarter. Finally, Oakworth Capital Inc. boosted its stake in Huntington Ingalls Industries by 1.7% in the 4th quarter. Oakworth Capital Inc. now owns 2,205 shares of the aerospace company's stock valued at $750,000 after buying an additional 36 shares in the last quarter. Institutional investors and hedge funds own 90.46% of the company's stock.

Huntington Ingalls Industries News Summary

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

• Positive Sentiment: Alembic Global Advisors raised its FY2026 and FY2027 EPS estimates for Huntington Ingalls Industries, signaling improving expectations for future profitability.
• Positive Sentiment: Melius Research increased its Q3 2026 EPS forecast for HII, adding to the view that earnings may strengthen later in the year.
• Positive Sentiment: Alembic also lifted its Q4 2026 EPS estimate, reinforcing optimism about the company’s second-half earnings trajectory.
• Neutral Sentiment: HII presented at Bernstein’s 42nd Annual Strategic Decisions Conference, which may have helped keep the company in focus for investors. Article Title
• Neutral Sentiment: Broader defense-sector news around U.S. policy toward Iran and sanctions was also in the mix, but it appears to be a secondary macro factor rather than a direct company-specific driver. Article Title
• Negative Sentiment: Despite the analyst optimism, the stock has been under pressure and is trading below its recent moving averages, suggesting investors remain cautious about execution and near-term momentum.
• Negative Sentiment: Melius and Alembic both trimmed their Q2 2026 EPS estimates, which points to some near-term softness even as later-period forecasts improved.

Huntington Ingalls Industries Company Profile

Huntington Ingalls Industries NYSE: HII is America's largest military shipbuilding company and a leading provider of professional services to the U.S. government. Headquartered in Newport News, Virginia, HII designs, constructs and maintains nuclear-powered aircraft carriers, submarines and other complex vessels for the U.S. Navy. The company's products include nuclear aircraft carriers, Virginia-class and Columbia-class submarines, as well as amphibious assault ships, destroyers and cutters.

Established in 2011 as a spin-off from Northrop Grumman's shipbuilding operations, HII traces its heritage to two historic builders: Newport News Shipbuilding, founded in the 19th century, and Ingalls Shipbuilding, founded in 1938.

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