Huntington Ingalls (HII) Expected to Beat Earnings Estimates: Should You Buy?

Core Viewpoint - Huntington Ingalls (HII) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ended December 2024, with a consensus outlook indicating a significant impact on its near-term stock price based on actual results compared to estimates [1][3]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of $3.28 per share, reflecting a year-over-year decrease of 52.5$3.03 billion, down 4.6% from the previous year [3]. - The consensus EPS estimate has been revised 0.01% lower in the last 30 days, indicating a slight reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Huntington Ingalls is higher than the Zacks Consensus Estimate, leading to a positive Earnings ESP of +8.35%, which indicates a likelihood of beating the consensus EPS estimate [10][11]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. Historical Performance - In the last reported quarter, Huntington Ingalls was expected to post earnings of $3.84 per share but only achieved$2.56, resulting in a surprise of -33.33% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - While Huntington Ingalls is positioned as a compelling earnings-beat candidate, other factors should also be considered when evaluating the stock ahead of its earnings release [16].