Shares of Huntington Ingalls Industries (HII) soared 12.53% intraday on Thursday, propelled by a stellar second-quarter earnings report that handily beat Wall Street estimates and an upward revision to its full-year shipbuilding revenue guidance.
The military shipbuilder posted adjusted earnings of $5.27 per share, far exceeding the analyst consensus of $3.80. Revenue rose 10.9% year-over-year to $3.42 billion, also topping expectations of $3.16 billion. The strong results were driven by higher production volumes at the Newport News and Ingalls shipyards, while total operating margin improved to 6.1% from 5.3% a year earlier.
In addition, the company raised its fiscal 2026 shipbuilding revenue outlook to a range of $10.2 billion to $10.4 billion, up from the prior $9.7 billion to $9.9 billion, and lifted the low end of its operating margin guidance. The upbeat report and improved forecast alleviated earlier concerns about profitability that had pressured the stock this year.
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