Hexcel (HXL) Earnings Preview: What to Expect on October 21st
Investors are eagerly awaiting Hexcel’s (HXL) upcoming quarterly earnings release scheduled for Monday, October 21st. Analysts are predicting an earnings per share (EPS) of $0.47, and the market is buzzing with anticipation for news of surpassing estimates and a positive outlook for the next quarter. It’s important to note that company guidance can significantly impact stock prices, making this release a crucial event for Hexcel shareholders.
Looking Back at Hexcel’s Recent Earnings Performance
In the previous earnings release, Hexcel exceeded EPS estimates by $0.04, resulting in a 0.26% increase in share price the following trading session. Here’s a quick overview of Hexcel’s past performance:
| Quarter | EPS Estimate | EPS Actual | Price Change (%) |
|—|—|—|—|
| Q2 2024 | $0.56 | $0.60 | 0.0% |
| Q1 2024 | $0.41 | $0.44 | 2.0% |
| Q4 2023 | $0.49 | $0.43 | -8.0% |
| Q3 2023 | $0.43 | $0.38 | -8.0% |
Hexcel’s Stock Performance and Analyst Sentiment
As of October 17th, Hexcel shares were trading at $62.25. Over the past 52 weeks, shares are down 4.35%, indicating a bearish sentiment among long-term shareholders going into this earnings release.
It’s essential for investors to stay informed about market sentiments and expectations. The consensus rating for Hexcel is Neutral, based on 6 analyst ratings. The average one-year price target of $67.0 implies a potential 7.63% upside.
Peer Analysis: A Comparative Look at Industry Players
To gain a broader perspective on Hexcel’s market position, let’s examine the analyst ratings and average one-year price targets of Rocket Lab USA and AeroVironment, two key industry players:
*
Rocket Lab USA:
Analysts have a consensus Outperform rating, with an average one-year price target of $7.12, implying a potential 88.56% downside.*
AeroVironment:
Analysts maintain an Outperform status, with an average one-year price target of $224.0, indicating a potential 259.84% upside.Key Metrics and Industry Positioning
The table below provides a summary of vital metrics for Rocket Lab USA and AeroVironment, shedding light on their respective standings within the industry:
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Hexcel | Neutral | 10.15% | $126.60M | 3.12% |
| Rocket Lab USA | Outperform | 71.25% | $27.16M | -8.91% |
| AeroVironment | Outperform | 24.38% | $81.47M | 2.54% |
Key Takeaway:
Hexcel ranks in the middle among its peers for consensus rating. It stands out for its strong revenue growth of 10.15%, indicating solid performance in this area. However, Hexcel lags behind its peers in terms of gross profit, needing improvement in this area. The company’s return on equity falls within the middle range. Overall, Hexcel demonstrates competitive revenue growth but requires enhancement in gross profit to align with its peers.Unveiling the Story Behind Hexcel
Founded in 1948, Hexcel is a leading provider of highly engineered composite fibers, fabrics, resins, and structures for the commercial aerospace, defense, and other industrial markets. These materials are lighter than metal and can withstand rigorous conditions, making them ideal for aircraft frames, wings, engines, and other critical components. The company’s name derives from the six-sided honeycomb structures that provide its products with their signature lightweight and rigidity.
Hexcel’s largest customers include Airbus (38% of 2022 sales) and Boeing (25% of prepandemic sales), along with their respective subcontractors.
Financial Milestones: Hexcel’s Journey
Market Capitalization Analysis:
Hexcel’s market capitalization is currently below industry benchmarks, reflecting a smaller scale relative to its peers. This could be attributed to factors such as growth expectations or operational capacity.Positive Revenue Trend:
An examination of Hexcel’s financials over the past three months reveals a positive trend. The company achieved a notable revenue growth rate of 10.15% as of June 30, 2024, demonstrating a substantial increase in top-line earnings. However, this revenue growth lags behind its industry peers.Net Margin:
Hexcel’s net margin stands out as a strong performer, exceeding industry averages. With an impressive net margin of 9.99%, the company showcases robust profitability and effective cost control.Return on Equity (ROE):
Hexcel’s ROE lags behind industry averages, indicating challenges in maximizing returns on equity capital. With an ROE of 3.12%, the company may face hurdles in achieving optimal financial performance.Return on Assets (ROA):
Hexcel’s ROA surpasses industry averages, demonstrating effective asset utilization and strong financial performance. The company boasts an impressive ROA of 1.77%.Debt Management:
With a below-average debt-to-equity ratio of 0.51, Hexcel adopts a prudent financial strategy, indicating a balanced approach to debt management.Stay Informed with Our Earnings Calendar
To track all earnings releases for Hexcel, visit our earnings calendar. This comprehensive resource provides you with the latest information on upcoming earnings reports for Hexcel and other companies.