• Earnings Estimate: Wall Street anticipates an EPS of $2.90 and revenue of approximately $2.79 billion.
• Challenges: Historical performance shows a negative earnings surprise of 0.84%, indicating potential underperformance.
• Financial Metrics: Key ratios such as P/E, price-to-sales, and debt-to-equity highlight the company's valuation and financial health.

Huntington Ingalls Industries, Inc. (NYSE:HII) is a major American shipbuilding company and a provider of professional services to partners in government and industry. It is the largest military shipbuilding company in the United States and a significant player in the defense sector. HII's main competitors include General Dynamics and Lockheed Martin, both of which are also key players in the defense and aerospace industries.

HII is set to release its quarterly earnings on May 1, 2025, with Wall Street estimating earnings per share (EPS) at $2.90 and revenue at approximately $2.79 billion. However, the company's performance may be affected by lower operating margins across most business segments, as highlighted by a historical four-quarter average negative earnings surprise of 0.84%. This suggests that HII has previously reported earnings below expectations.

Despite these challenges, there is an anticipated growth in revenues for HII’s Ingalls unit, driven by higher revenues from surface combatants. The Zacks Consensus Estimate projects the Ingalls unit’s revenues at $663.3 million, marking a 1.3% increase from the same quarter last year. However, the overall bottom line may still be impacted by dismal sales growth expectations and weak operating margin performance.

The company's financial metrics provide further insight into its valuation and performance. HII has a price-to-earnings (P/E) ratio of approximately 16.38, indicating how the market values its earnings. The price-to-sales ratio is about 0.78, suggesting investors pay less than a dollar for each dollar of sales. The enterprise value to sales ratio is around 1.01, reflecting the company's total valuation relative to its sales.

HII's financial health is also indicated by its debt-to-equity ratio of approximately 0.73, showing a moderate level of debt compared to equity. The current ratio of around 1.08 suggests that the company has a slightly higher level of current assets compared to its current liabilities, indicating a stable liquidity position. These metrics will be crucial for investors to consider as they assess the company's upcoming earnings report and its potential impact on HII's stock price.