Hexcel Corporation (HXL) Earnings Preview: What to Expect & Analyst Sentiment
Investors are gearing up for Hexcel Corporation’s (HXL) third-quarter earnings release, scheduled for after the market close on Monday, October 21st. The Stamford, Connecticut-based company is anticipated to report strong earnings growth, with analysts forecasting earnings per share of 46 cents, a significant jump from the 38 cents reported in the same period last year. Revenue is also projected to climb, reaching an estimated $456.9 million compared to $427.28 million in the year-ago period. These figures are based on data from Benzinga Pro.
While the earnings expectations are positive, the recent trend in analyst ratings paints a more nuanced picture. Hexcel missed second-quarter revenue estimates and lowered its FY24 outlook on July 18th, leading some analysts to adjust their recommendations.
Here’s a breakdown of the recent analyst actions:
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Truist Securities:
Analyst Michael Ciarmoli maintained a Buy rating on October 18th but reduced the price target from $78 to $76. Ciarmoli boasts a 78% accuracy rate, suggesting his insights are worth paying attention to.*
Vertical Research:
On October 10th, analyst Robert Stallard downgraded the stock from Buy to Hold with a price target of $65. Stallard’s accuracy rate stands at 76%.*
Deutsche Bank:
Analyst Scott Deuschle maintained a Hold rating on October 3rd but lowered the price target from $65 to $62. Deuschle’s accuracy rate is 75%.*
BMO Capital:
Analyst John McNulty kept a Market Perform rating on September 30th but reduced the price target from $71 to $70. McNulty’s accuracy rate is 68%.*
RBC Capital:
Analyst Ken Herbert downgraded the stock from Outperform to Sector Perform and cut the price target from $76 to $68 on August 14th. Herbert’s accuracy rate is 73%.What Should Investors Watch For?
With this mixed analyst sentiment, investors will be closely watching Hexcel’s earnings call for insights into several key areas:
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Guidance:
Hexcel’s revised FY24 outlook after the disappointing second-quarter results will be a focal point. Investors will want to see if the company is maintaining its revised outlook or if further adjustments are on the horizon.*
Market Dynamics:
The aerospace and defense industry is facing evolving dynamics, including supply chain challenges and potential economic headwinds. Hexcel’s management commentary on these factors will be crucial.*
Growth Initiatives:
Investors will be eager to understand Hexcel’s plans for future growth, including new product launches, market expansion strategies, and potential acquisitions.As Hexcel prepares to report its third-quarter earnings, the mixed analyst sentiment suggests that investors should approach the release with a balanced perspective. By carefully evaluating the company’s financial performance, its guidance, and its management’s insights, investors can make informed decisions regarding their HXL investment.
