Huntington Ingalls (HII) Q3 Earnings and Revenues Lag Estimates

Group 1: Earnings Performance - Huntington Ingalls reported quarterly earnings of $2.56 per share, missing the Zacks Consensus Estimate of $3.84 per share, and down from $3.70 per share a year ago, representing an earnings surprise of -33.33% [1] - The company posted revenues of $2.75 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 4.51%, and down from $2.82 billion year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Huntington Ingalls shares have lost about 3.5% since the beginning of the year, while the S&P 500 has gained 21.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $4.47 on $3.11 billion in revenues, and for the current fiscal year, it is $16.49 on $11.78 billion in revenues [7] Group 3: Industry Context - The Aerospace - Defense industry, to which Huntington Ingalls belongs, is currently in the top 32% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions can be beneficial for investors [5] - The current estimate revisions trend for Huntington Ingalls is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]