There's been a notable change in appetite for Huntington Ingalls Industries, Inc. (NYSE:HII) shares in the week since its yearly report, with the stock down 15% to US$168. It looks like the results were a bit of a negative overall. While revenues of US$12b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.3% to hit US$13.96 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Huntington Ingalls Industries

Taking into account the latest results, the current consensus from Huntington Ingalls Industries' ten analysts is for revenues of US$12.0b in 2025. This would reflect a modest 3.7% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to shrink 3.0% to US$13.64 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$12.1b and earnings per share (EPS) of US$15.82 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

The average price target fell 9.0% to US$208, with reduced earnings forecasts clearly tied to a lower valuation estimate. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Huntington Ingalls Industries, with the most bullish analyst valuing it at US$312 and the most bearish at US$145 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Huntington Ingalls Industries' revenue growth is expected to slow, with the forecast 3.7% annualised growth rate until the end of 2025 being well below the historical 6.3% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.9% annually. 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 important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Huntington Ingalls Industries going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Huntington Ingalls Industries (at least 1 which can't be ignored) , and understanding them should be part of your investment process.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.