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As you might know, Huntington Ingalls Industries, Inc. (NYSE:HII) just kicked off its latest third-quarter results with some very strong numbers. Results were good overall, with revenues beating analyst predictions by 8.3% to hit US$3.2b. Statutory earnings per share (EPS) came in at US$3.68, some 9.4% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there’s been a strong change in the company’s prospects, or if it’s business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the ten analysts covering Huntington Ingalls Industries are now predicting revenues of US$12.6b in 2026. If met, this would reflect a reasonable 5.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 19% to US$17.21. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$12.5b and earnings per share (EPS) of US$17.10 in 2026. So it’s pretty clear that, although the analysts have updated their estimates, there’s been no major change in expectations for the business following the latest results.

See our latest analysis for Huntington Ingalls Industries

The analysts reconfirmed their price target of US$311, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company’s valuation. The most optimistic Huntington Ingalls Industries analyst has a price target of US$356 per share, while the most pessimistic values it at US$260. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Huntington Ingalls Industries’ revenue growth is expected to slow, with the forecast 4.0% annualised growth rate until the end of 2026 being well below the historical 5.7% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.5% per year. So it’s pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Huntington Ingalls Industries.

The most important thing to take away is that there’s been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$311, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. We have forecasts for Huntington Ingalls Industries going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we’ve spotted 2 warning signs for Huntington Ingalls Industries you should be aware of.

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.

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China will begin easing an export ban on automotive computer chips vital to production of cars across the world as part of a trade deal struck between the US and China, the White House has said.

The White House confirmed details of the deal in a new fact sheet after Xi Jinping and Donald Trump met in South Korea this week.

The nations also reached agreements on US soybean exports, the supply of rare earth minerals, and the materials used in production of the drug fentanyl.

The deal de-escalates a trade war between the world’s two largest economies after Trump hit China with tariffs after he entered office this year, leading to rounds of retaliatory tariffs and global business uncertainty.

Much of what is in Saturday’s fact sheet was announced by Trump and other officials following the meeting between the two leaders.

Trump had described the talks, held in South Korea, as “amazing”, while Beijing had said they had reached a consensus to resolve “major trade issues” – but did not immediately release details of the deal.

Speaking on Sunday following the release of the fact sheet, Treasury Secretary Scott Bessent told CNN: “We don’t want to decouple from China… (But) they’ve shown themselves to be an unreliable partner.”

One of the issues addressed in the deal was the export of automotive computer chips. There had been concern that a lack of chips from Nexperia, which has production facilities in China, could create global supply chain issues.

Nexperia is a Chinese-owned company, but is based in the Netherlands. About 70% of Nexperia chips made in Europe are sent to China to be completed and re-exported to other countries.

The fact sheet states that China will “take appropriate measures to ensure the resumption of trade from Nexperia’s facilities in China, allowing production of critical legacy chips to flow to the rest of the world”.

It follows Beijing saying on Saturday that it was considering exempting some firms from the ban.

Last month, the likes of Volvo Cars and Volkswagen warned a chip shortage could lead to temporary shutdowns at their plants, and Jaguar Land Rover said the lack of chips posed a threat to their business.

On other key issues, Beijing will now pause export controls it brought in last month on rare earth minerals – vital in the production of cars, planes and weapons – for a year.

The White House also said it would lower tariffs brought in to curb the import of fentanyl into the US, with China agreeing to take “significant measures” to deal with the issue.

Fentanyl is a synthetic drug manufactured from a combination of chemicals, and while it is approved for medical use in the US, the powerful and highly-addictive substance has since become the main drug responsible for opioid overdose deaths in the US.

The chemicals used in its manufacturing, some of which have legitimate uses, are mostly sourced from China.

On soybeans, China has committed to buying 12 million tonnes of US soybeans in the last two months of 2025, and 25 million metric tonnes in each of the following three years – which is roughly the level they were previously at.

China’s decision to stop purchasing soybeans from the US earlier this year denied American farmers access to their largest export market.

In response, Trump revived a bailout for farmers which was in place during his first term in office.