Why Huntington Ingalls Stock Sank in October
Shipbuilder Huntington Ingalls Industries (NYSE: HII) posted disappointing quarterly results and cut its full-year guidance. Shares plunged following the announcement, ending down 30% for the month of October, according to data provided by S&P Global Market Intelligence.
Huntington Ingalls is one of two major shipbuilders for the U.S. Navy, and owner of coveted defense assets, including the Newport News shipyard in Virginia. It is a long-cycle business that can be volatile quarter to quarter, but the latest results were far worse than Wall Street had anticipated.
The company earned $2.56 per share on sales of $2.7 billion, short of the $3.86 per share on sales of $2.87 billion consensus. Huntington Ingalls reported lower volumes on key shipbuilding programs and made some unfavorable adjustments to total costs on some future ships.
Source Fool.com
