Melius Research Has Bearish Outlook for HII FY2026 Earnings

Key Points

• Melius Research turned slightly more cautious on HII’s FY2026 earnings, cutting its EPS forecast to $16.70 from $16.76. That estimate is still below the broader consensus of $17.31 per share.
• Other analysts have also grown more conservative, with several recent price target cuts and downgrades, leaving HII with a consensus rating of Hold and an average price target of $374.
• Despite the bearish outlook, HII’s latest quarter beat expectations, with EPS of $3.79 and revenue of $3.10 billion, while the company also continues to pay a 2.0% dividend yield.

Huntington Ingalls Industries, Inc. (NYSE:HII - Free Report) - Equities researchers at Melius Research lowered their FY2026 EPS estimates for Huntington Ingalls Industries in a report issued on Monday, July 13th. Melius Research analyst S. Mikus now forecasts that the aerospace company will earn $16.70 per share for the year, down from their prior estimate of $16.76. The consensus estimate for Huntington Ingalls Industries' current full-year earnings is $17.31 per share. Melius Research also issued estimates for Huntington Ingalls Industries' Q4 2026 earnings at $4.88 EPS and FY2028 earnings at $24.94 EPS.

Several other equities analysts have also recently weighed in on HII. Citigroup lowered their price objective on shares of Huntington Ingalls Industries from $405.00 to $349.00 and set a "buy" rating on the stock in a research report on Wednesday, July 1st. Wall Street Zen lowered Huntington Ingalls Industries from a "buy" rating to a "hold" rating in a report on Monday, May 18th. Weiss Ratings cut Huntington Ingalls Industries from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, May 6th. Wells Fargo & Company started coverage on Huntington Ingalls Industries in a report on Wednesday, April 1st. They set an "equal weight" rating and a $400.00 price target on the stock. Finally, TD Cowen dropped their price target on Huntington Ingalls Industries from $420.00 to $360.00 and set a "buy" rating on the stock in a research report on Monday, July 13th. Four research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat.com, Huntington Ingalls Industries currently has a consensus rating of "Hold" and an average price target of $374.00.

Huntington Ingalls Industries Stock Up 0.1%

Shares of NYSE:HII opened at $269.33 on Monday. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.11 and a current ratio of 1.19. The company has a market cap of $10.61 billion, a PE ratio of 17.52, a price-to-earnings-growth ratio of 1.15 and a beta of 0.25. Huntington Ingalls Industries has a 52 week low of $250.91 and a 52 week high of $460.00. The firm has a 50 day simple moving average of $298.06 and a 200 day simple moving average of $363.91.

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

Hedge Funds Weigh In On Huntington Ingalls Industries

Several hedge funds have recently bought and sold shares of the business. Northwestern Mutual Wealth Management Co. lifted its position in shares of Huntington Ingalls Industries by 38,526.6% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,986,567 shares of the aerospace company's stock worth $675,572,000 after buying an additional 1,981,424 shares during the last quarter. Van ECK Associates Corp increased its holdings in shares of Huntington Ingalls Industries by 32.1% during the 4th quarter. Van ECK Associates Corp now owns 1,646,733 shares of the aerospace company's stock valued at $560,004,000 after acquiring an additional 400,428 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of Huntington Ingalls Industries by 5.3% during the 4th quarter. Geode Capital Management LLC now owns 1,116,501 shares of the aerospace company's stock valued at $379,098,000 after acquiring an additional 56,618 shares during the last quarter. AQR Capital Management LLC raised its stake in shares of Huntington Ingalls Industries by 85.0% in the 4th quarter. AQR Capital Management LLC now owns 1,085,619 shares of the aerospace company's stock valued at $369,186,000 after acquiring an additional 498,690 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in shares of Huntington Ingalls Industries by 1.2% in the 4th quarter. Dimensional Fund Advisors LP now owns 978,365 shares of the aerospace company's stock valued at $332,717,000 after acquiring an additional 11,743 shares in the last quarter. 90.46% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Huntington Ingalls Industries

In other news, VP Edmond E. Jr. Hughes sold 3,500 shares of the firm's stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $319.58, for a total transaction of $1,118,530.00. Following the transaction, the vice president owned 8,391 shares in the company, valued at approximately $2,681,595.78. This trade represents a 29.43% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.80% of the stock is currently owned by company insiders.

Huntington Ingalls Industries Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Friday, May 29th were paid a dividend of $1.38 per share. The ex-dividend date was Friday, May 29th. This represents a $5.52 annualized dividend and a dividend yield of 2.0%. Huntington Ingalls Industries's dividend payout ratio is 35.91%.

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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