Melius Research Has Negative Outlook for HII Q3 Earnings

Key Points

• Melius Research cut its Q3 2026 EPS estimate for Huntington Ingalls Industries to $4.06 from $4.38, while forecasting FY2027 EPS of $21.34. The broader analyst consensus rates HII “Moderate Buy,” with an average price target of $378.88.
• HII recently exceeded quarterly expectations, reporting $5.27 EPS versus the $3.79 consensus and $3.42 billion in revenue, up 10.9% year over year. However, the stock opened at $326.04, down 0.2%, and remains below its 200-day moving average.
• The company declared a quarterly dividend of $1.38 per share, equivalent to a $5.52 annualized payout and a 1.7% yield. CEO Christopher Kastner also sold 13,070 shares under a pre-arranged trading plan.

Huntington Ingalls Industries, Inc. (NYSE:HII - Free Report) - Melius Research decreased their Q3 2026 earnings per share (EPS) estimates for Huntington Ingalls Industries in a report released on Tuesday, August 11th. Melius Research analyst S. Mikus now forecasts that the aerospace company will earn $4.06 per share for the quarter, down from their previous forecast of $4.38. The consensus estimate for Huntington Ingalls Industries' current full-year earnings is $18.04 per share. Melius Research also issued estimates for Huntington Ingalls Industries' FY2027 earnings at $21.34 EPS.

Huntington Ingalls Industries (NYSE:HII - Get Free Report) last announced its quarterly earnings data 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 net margin of 5.01% and a return on equity of 12.89%. The company had revenue of $3.42 billion for the quarter, compared to analysts' expectations of $3.15 billion. During the same period in the previous year, the company posted $3.86 EPS. Huntington Ingalls Industries's revenue was up 10.9% compared to the same quarter last year.

Other equities research analysts also recently issued research reports about the stock. Wells Fargo & Company raised their price objective on shares of Huntington Ingalls Industries from $325.00 to $340.00 and gave the company an "equal weight" rating in a research report on Tuesday, August 4th. Citigroup upped their price objective on Huntington Ingalls Industries from $349.00 to $379.00 and gave the stock a "buy" rating in a report on Friday, July 31st. Wolfe Research upgraded Huntington Ingalls Industries from a "peer perform" rating to an "outperform" rating and set a $364.00 price objective for the company in a research report on Friday, July 31st. Weiss Ratings reissued a "hold (c+)" rating on shares of Huntington Ingalls Industries in a report on Monday, August 3rd. Finally, TD Cowen decreased their target price on shares of 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. Five research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $378.88.

Huntington Ingalls Industries Stock Down 0.2%

Shares of NYSE:HII opened at $326.04 on Friday. Huntington Ingalls Industries has a fifty-two week low of $262.66 and a fifty-two week 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. The firm's 50-day simple moving average is $294.17 and its 200-day simple moving average is $352.84. The company has a market cap of $12.85 billion, a price-to-earnings ratio of 19.43, a PEG ratio of 1.26 and a beta of 0.24.

Institutional Investors Weigh In On Huntington Ingalls Industries

A number of large investors have recently added to or reduced their stakes in HII. Bayban purchased a new stake in shares of Huntington Ingalls Industries in the first quarter valued at about $27,000. NBC Securities Inc. grew its position in shares of Huntington Ingalls Industries by 87.2% in the fourth quarter. NBC Securities Inc. now owns 88 shares of the aerospace company's stock valued at $30,000 after purchasing an additional 41 shares during the last quarter. Cassaday & Co Wealth Management LLC purchased a new position in shares of Huntington Ingalls Industries during the 1st quarter worth approximately $36,000. CYBER HORNET ETFs LLC acquired a new position in shares of Huntington Ingalls Industries during the 2nd quarter worth approximately $25,000. Finally, Rakuten Securities Inc. lifted its stake in Huntington Ingalls Industries by 140.0% in the 2nd quarter. Rakuten Securities Inc. now owns 108 shares of the aerospace company's stock valued at $26,000 after buying an additional 63 shares in the last quarter. 90.46% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Huntington Ingalls Industries

In other Huntington Ingalls Industries news, CEO Christopher D. Kastner sold 13,070 shares of the business's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $324.92, for a total transaction of $4,246,704.40. Following the sale, the chief executive officer directly owned 11,224 shares in the company, valued at approximately $3,646,902.08. The trade was a 53.80% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Edmond E. Jr. Hughes sold 3,500 shares of the company's stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $319.58, for a total value of $1,118,530.00. Following the completion of the sale, the vice president directly owned 8,391 shares in the company, valued at $2,681,595.78. This trade represents a 29.43% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 0.80% of the company's stock.

Huntington Ingalls Industries Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 11th. Investors of record on Friday, August 28th will be issued a dividend of $1.38 per share. The ex-dividend date of this dividend is Friday, August 28th. This represents a $5.52 annualized dividend and a yield of 1.7%. Huntington Ingalls Industries's payout ratio is currently 32.90%.

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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