What caused HII's Q3 earnings to fall below forecasts?

Huntington Ingalls Industries' (HII) Q3 earnings fell below forecasts due to a combination of factors:

1. **Revenue Shortfall**: The company's revenue for the quarter was $2.7 billion, which missed estimates. This shortfall can be attributed to lower segment operating income and performance issues at Newport News Shipbuilding.
2. **Earnings Per Share (EPS) Estimate Cuts**: Analysts at Zacks Research and Melius Research recently cut their Q3 2024 EPS estimates for HII, indicating a consensus that the company's earnings would fall below expectations. These estimates cuts reflect the analysts' concerns about the company's performance, which could be related to the revenue shortfall and other factors.
3. **Operating Margin Decline**: The operating margin for HII declined to 3.0% in Q3 2024, down from 6.1% in the same quarter of the previous year. This decline is primarily due to the performance issues at Newport News Shipbuilding, which have negatively impacted the company's profitability.

In summary, HII's Q3 earnings fell below forecasts due to a combination of lower revenue, lower EPS estimates, and a decline in operating margin. These factors indicate that the company is facing significant challenges, particularly at its Newport News Shipbuilding segment.