Why Huntington Ingalls Industries Stock Is Heading Higher

Huntington Ingalls Industries (HII) stock climbed over 13% after reporting strong quarterly results with revenue growth of 16.7% in its Ingalls Shipbuilding division and 15.3% in Newport News Shipbuilding. The company beat earnings expectations with net earnings surging 36.8% to $208 million ($5.27 per share vs. expected $3.82), and raised full-year guidance for shipbuilding revenue to $10.3 billion and operating margin to 6.25%. Growing geopolitical tensions in the Middle East and Ukraine are driving increased demand for naval vessels.