Huntington Ingalls Earnings: Catching Up on Boat Milestones; Valuation Up 9% on Margin Progress

Huntington Ingalls turned in first-quarter 2024 results that basically met our revenue forecast and slightly exceeded our conservative margin expectations. Management affirmed its expectations for 2024. We have increased our fair value estimate from $290 to $317 because we increased our near-term margin forecast based on these latest results, and we also trimmed our long term estimate of working capital needs at the company, both of which benefit cash flows.