It's been a mediocre week for Huntington Ingalls Industries, Inc. (NYSE:HII) shareholders, with the stock dropping 11% to US$246 in the week since its latest quarterly results. Huntington Ingalls Industries reported US$2.8b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$3.87 beat expectations, being 9.8% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Huntington Ingalls Industries

Taking into account the latest results, Huntington Ingalls Industries' nine analysts currently expect revenues in 2024 to be US$11.7b, approximately in line with the last 12 months. Statutory earnings per share are forecast to reduce 7.5% to US$16.53 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$11.6b and earnings per share (EPS) of US$16.52 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$287, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Huntington Ingalls Industries, with the most bullish analyst valuing it at US$317 and the most bearish at US$226 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Huntington Ingalls Industries' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 0.8% growth on an annualised basis. This is compared to a historical growth rate of 6.3% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.3% per year. Factoring in the forecast slowdown in growth, it seems obvious that Huntington Ingalls Industries is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Huntington Ingalls Industries' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Huntington Ingalls Industries going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Huntington Ingalls Industries you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.