Huntington Ingalls, a U.S.-based military shipbuilder, reported results for the second quarter that were above Wall Street expectations on Thursday as production issues at its shipyards eased and submarine demand grew.

In premarket trading, the company's stock rose by about 5%.

Huntington is the prime contractor for the U.S. Navy’s nuclear-powered Columbia class submarines. It also produces Virginia-class subs at its Newport News Shipbuilding Facility.

Huntington's production has been affected in recent months due to the persistent difficulty in retaining skilled workers in shipyards, despite China expanding its naval footprint and global tensions maintaining high demand for aircraft carriers and submarines.

In a press release, CEO Chris Kastner stated that "early signs" have shown that targeted investments help stabilize the workforce and the supply chain in support of a broader maritime industry base.

Huntington is expected to benefit from the efforts of Donald Trump to revive American shipbuilding in order to deter China.

According to LSEG, it posted a profit per share of $3.86 in the second quarter, exceeding analysts' average estimates of $3.28.

The company's revenue from sales and services rose by 3.5%, to $3.08 Billion in the third quarter. This was also higher than expectations of $2.93 Billion. (Reporting by Utkarsh Shetti in Bengaluru; Editing by Sahal Muhammed)

(source: Reuters)