Aerospace and defense company Huntington Ingalls (NYSE: HII) will be reporting earnings this Thursday before the bell. Here’s what investors should know.
Huntington Ingalls beat analysts’ revenue expectations last quarter, reporting revenues of $3.10 billion, up 13.4% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates.
Is Huntington Ingalls a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Huntington Ingalls’s revenue to grow 2.5% year on year, slowing from the 3.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Huntington Ingalls has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Huntington Ingalls’s peers in the defense contractors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. RTX delivered year-on-year revenue growth of 14.5%, beating analysts’ expectations by 7.8%, and Lockheed Martin reported revenues up 10.5%, topping estimates by 3.8%. RTX traded up 9.2% following the results while Lockheed Martin was also up 13.3%.
Read our full analysis of RTX’s results here and Lockheed Martin’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the defense contractors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.3% on average over the last month. Huntington Ingalls is up 7.6% during the same time and is heading into earnings with an average analyst price target of $364 (compared to the current share price of $298.50).
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
