Wednesday's Underperforming Sectors: Defense, Home Furnishings, and Improvement Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 05 2025
0mins
Should l Buy HII?
Source: NASDAQ.COM
Defense Sector Performance: On Wednesday, defense shares fell by approximately 2.9%, with Kratos Defense & Security Solutions dropping 13.6% and Huntington Ingalls Industries declining 2.1%.
Home Furnishings & Improvement Sector: This sector also lagged, down about 2.4%, primarily due to American Woodmark's 13.7% drop and MasterBrand's 12.8% decline.
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Analyst Views on HII
Wall Street analysts forecast HII stock price to rise
6 Analyst Rating
4 Buy
1 Hold
1 Sell
Moderate Buy
Current: 319.540
Low
300.00
Averages
344.80
High
376.00
Current: 319.540
Low
300.00
Averages
344.80
High
376.00
About HII
Huntington Ingalls Industries, Inc. is a global, all-domain defense provider. The Company delivers ships and all-domain solutions in service of the nation. It delivers critical capabilities extending from ships to unmanned systems, cyber, ISR, AI/ML and synthetic training. It operates through three segments: Ingalls Shipbuilding (Ingalls), Newport News Shipbuilding (Newport News), and Mission Technologies. Through its Ingalls segment, the Company designs and constructs non-nuclear ships for the United States Navy and Coast Guard, including amphibious assault ships, expeditionary warfare ships, surface combatants, and national security cutters (NSC). The core business of its Newport News segment is designing and constructing nuclear-powered aircraft carriers and submarines, and the refueling and overhaul and the inactivation of nuclear-powered aircraft carriers. The Company’s Mission Technologies segment develops integrated solutions that enable connected, all-domain force.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Huntington Ingalls Beats Earnings Expectations but Shares Drop
- Earnings Beat: Huntington Ingalls reported first-quarter revenue of approximately $3.1 billion, surpassing the consensus estimate of $3.02 billion, with GAAP earnings per share at $3.79, exceeding expectations of $3.71, indicating strong revenue growth despite margin pressures.
- Margin Compression: Operating income decreased from $161 million to $155 million year-over-year, while operating margin fell from 5.9% to 5.0%, highlighting profitability challenges within key shipbuilding divisions amid lower performance in aircraft carrier construction.
- Negative Cash Flow: The company reported negative free cash flow of $461 million for the quarter, with net cash used in operations totaling $390 million, reflecting the capital-intensive nature of shipbuilding programs and the working capital demands of long-duration defense contracts.
- Stable Outlook: Despite profitability concerns, Huntington reaffirmed its full-year outlook, expecting shipbuilding revenue between $9.7 billion and $9.9 billion and free cash flow of $500 million to $600 million, demonstrating confidence in future operational initiatives.
See More
HII Receives Best Employers Award for Health Care Value
- Award Recognition: HII was honored as the sole recipient of the Best Employers Award for Health Care Value, highlighting its excellence in innovative, evidence-based benefits design that focuses on prevention, clinical outcomes, and long-term savings, thereby reinforcing its leadership position in the industry.
- Commitment to Employee Well-being: This marks the third consecutive year HII has received this award, demonstrating its ongoing efforts to enhance employee well-being through comprehensive and innovative benefits programs, which in turn improve overall company performance and employee satisfaction.
- Strategic Health Initiatives: HII's health programs have significantly reduced emergency room visits and disability costs through on-site Advanced Primary Care, while partnerships for virtual specialty care have improved access and outcomes, showcasing its strategic and effective approach to enhancing health care value.
- Industry Influence: HII's recognition alongside renowned companies like Costco, Dell, and Walmart further establishes its leadership in health and wellness, attracting top talent and enhancing the company's reputation in the competitive landscape.
See More
Insider at Huntington Ingalls Industries (HII.US) Plans to Sell $3.03 Million in Common Stock via Form 144
Company Announcement: Kelly Anastasias intends to sell 9,190 shares of its common stock on May 5.
Market Value: The total market value of the shares being sold is approximately $3.03 million.
See More
Rockwell Automation Surges on Strong Q2 Earnings Beat
- Strong Earnings Performance: Rockwell Automation reported a fiscal Q2 earnings per share of $3.30, exceeding analyst expectations of $2.88, with revenue of $2.24 billion surpassing the forecast of $2.16 billion, indicating robust market demand and operational efficiency.
- Upgraded Outlook: The company raised its fiscal 2026 profit outlook, reflecting confidence in future performance, which is likely to further boost investor sentiment and stock price.
- Competitor Struggles: Huntington Ingalls saw an 11% drop in shares despite free cash flow projections of $500 million to $600 million, falling short of the consensus estimate of $569.7 million, highlighting increasing competitive pressures in the industry.
- Positive Market Reaction: Other companies like DuPont and Waters Corp also saw stock price increases due to better-than-expected earnings, indicating a recovering market confidence in the manufacturing and technology sectors.
See More
Huntington Ingalls Reports Lower Q1 Profit Amid Cost Pressures
- Operating Margin Decline: Huntington Ingalls reported a first-quarter operating margin of 5%, down 80 basis points from 5.9% last year, indicating significant cost pressures from inflation and global trade volatility that could impact future profitability.
- Sales Growth Challenges: While sales in the Newport News shipbuilding segment rose 19.3% to $1.67 billion, the overall cost of product sales increased by 20% to $1.74 billion, highlighting the ongoing challenges in cost management despite strong demand.
- Negative Market Reaction: The company's shares fell nearly 3% in premarket trading, reflecting investor concerns about the future outlook amid uncertainties in global supply chains and U.S. tariff policies, which may lead to decreased market confidence.
- Financial Performance Exceeds Expectations: Despite these challenges, Huntington's total quarterly revenue reached $3.1 billion, surpassing Wall Street estimates of $3.02 billion, demonstrating the company's solid market position amid strong underlying demand for defense products.
See More
HII Reports Strong Q1 2026 Results with $3.1B Revenue
- Significant Revenue Growth: HII's Q1 2026 revenue reached $3.1 billion, a 13.4% increase year-over-year, primarily driven by growth at Newport News and Ingalls Shipbuilding, indicating strong demand and enhanced market position in the defense sector.
- Stable Net Earnings: The company reported net earnings of $149 million with diluted earnings per share of $3.79, unchanged from Q1 2025, demonstrating stability in profitability despite operational cost challenges.
- Robust New Contract Awards: New contract awards totaled $4.0 billion in Q1, bringing the total backlog to $54.0 billion as of March 31, 2026, reflecting the company's competitiveness in the defense contracting market and sustainability of future revenues.
- Operational Efficiency Improvement: HII's operating income for Q1 was $155 million with an operating margin of 5.0%, although down from the previous year, the company continues to focus on driving efficiency and expanding its industrial base network to support future growth strategies.
See More
Huntington Ingalls Beats Earnings Expectations but Shares Drop
- Earnings Beat: Huntington Ingalls reported first-quarter revenue of approximately $3.1 billion, surpassing the consensus estimate of $3.02 billion, with GAAP earnings per share at $3.79, exceeding expectations of $3.71, indicating strong revenue growth despite margin pressures.
- Margin Compression: Operating income decreased from $161 million to $155 million year-over-year, while operating margin fell from 5.9% to 5.0%, highlighting profitability challenges within key shipbuilding divisions amid lower performance in aircraft carrier construction.
- Negative Cash Flow: The company reported negative free cash flow of $461 million for the quarter, with net cash used in operations totaling $390 million, reflecting the capital-intensive nature of shipbuilding programs and the working capital demands of long-duration defense contracts.
- Stable Outlook: Despite profitability concerns, Huntington reaffirmed its full-year outlook, expecting shipbuilding revenue between $9.7 billion and $9.9 billion and free cash flow of $500 million to $600 million, demonstrating confidence in future operational initiatives.
See More
HII Receives Best Employers Award for Health Care Value
- Award Recognition: HII was honored as the sole recipient of the Best Employers Award for Health Care Value, highlighting its excellence in innovative, evidence-based benefits design that focuses on prevention, clinical outcomes, and long-term savings, thereby reinforcing its leadership position in the industry.
- Commitment to Employee Well-being: This marks the third consecutive year HII has received this award, demonstrating its ongoing efforts to enhance employee well-being through comprehensive and innovative benefits programs, which in turn improve overall company performance and employee satisfaction.
- Strategic Health Initiatives: HII's health programs have significantly reduced emergency room visits and disability costs through on-site Advanced Primary Care, while partnerships for virtual specialty care have improved access and outcomes, showcasing its strategic and effective approach to enhancing health care value.
- Industry Influence: HII's recognition alongside renowned companies like Costco, Dell, and Walmart further establishes its leadership in health and wellness, attracting top talent and enhancing the company's reputation in the competitive landscape.
See More
Insider at Huntington Ingalls Industries (HII.US) Plans to Sell $3.03 Million in Common Stock via Form 144
Company Announcement: Kelly Anastasias intends to sell 9,190 shares of its common stock on May 5.
Market Value: The total market value of the shares being sold is approximately $3.03 million.
See More
Rockwell Automation Surges on Strong Q2 Earnings Beat
- Strong Earnings Performance: Rockwell Automation reported a fiscal Q2 earnings per share of $3.30, exceeding analyst expectations of $2.88, with revenue of $2.24 billion surpassing the forecast of $2.16 billion, indicating robust market demand and operational efficiency.
- Upgraded Outlook: The company raised its fiscal 2026 profit outlook, reflecting confidence in future performance, which is likely to further boost investor sentiment and stock price.
- Competitor Struggles: Huntington Ingalls saw an 11% drop in shares despite free cash flow projections of $500 million to $600 million, falling short of the consensus estimate of $569.7 million, highlighting increasing competitive pressures in the industry.
- Positive Market Reaction: Other companies like DuPont and Waters Corp also saw stock price increases due to better-than-expected earnings, indicating a recovering market confidence in the manufacturing and technology sectors.
See More
Huntington Ingalls Reports Lower Q1 Profit Amid Cost Pressures
- Operating Margin Decline: Huntington Ingalls reported a first-quarter operating margin of 5%, down 80 basis points from 5.9% last year, indicating significant cost pressures from inflation and global trade volatility that could impact future profitability.
- Sales Growth Challenges: While sales in the Newport News shipbuilding segment rose 19.3% to $1.67 billion, the overall cost of product sales increased by 20% to $1.74 billion, highlighting the ongoing challenges in cost management despite strong demand.
- Negative Market Reaction: The company's shares fell nearly 3% in premarket trading, reflecting investor concerns about the future outlook amid uncertainties in global supply chains and U.S. tariff policies, which may lead to decreased market confidence.
- Financial Performance Exceeds Expectations: Despite these challenges, Huntington's total quarterly revenue reached $3.1 billion, surpassing Wall Street estimates of $3.02 billion, demonstrating the company's solid market position amid strong underlying demand for defense products.
See More
HII Reports Strong Q1 2026 Results with $3.1B Revenue
- Significant Revenue Growth: HII's Q1 2026 revenue reached $3.1 billion, a 13.4% increase year-over-year, primarily driven by growth at Newport News and Ingalls Shipbuilding, indicating strong demand and enhanced market position in the defense sector.
- Stable Net Earnings: The company reported net earnings of $149 million with diluted earnings per share of $3.79, unchanged from Q1 2025, demonstrating stability in profitability despite operational cost challenges.
- Robust New Contract Awards: New contract awards totaled $4.0 billion in Q1, bringing the total backlog to $54.0 billion as of March 31, 2026, reflecting the company's competitiveness in the defense contracting market and sustainability of future revenues.
- Operational Efficiency Improvement: HII's operating income for Q1 was $155 million with an operating margin of 5.0%, although down from the previous year, the company continues to focus on driving efficiency and expanding its industrial base network to support future growth strategies.
See More
