Why Huntington Ingalls Stock Sank in February
Shipbuilder Huntington Ingalls Industries (NYSE: HII) missed quarterly estimates and warned that there are no easy fixes to its execution issues. Investors abandoned ship, sending Huntington Ingalls' shares down 11% for the month of February, according to data provided by S&P Global Market Intelligence.
Huntington Ingalls is perhaps the most important U.S. military shipbuilder, owner of the Newport News facility in Virginia that is responsible for the production of aircraft carriers and submarines as well as several shipyards spread across the Gulf Coast. There is steady and stable demand for the company's products, but the military can only buy so many ships at a time, and the ones under contract take years to complete.
Huntington Ingalls earned $3.15 per share on revenue of $3 billion in the fourth quarter, missing Wall Street consensus estimates and reporting sales down 5.7% year over year. The company reported $74 million in negative profit adjustments in the quarter driven by labor and supply chain bottlenecks.
Source Fool.com
