Hexcel Beats Up on Analysts Yet Again
Hexcel (NYS: HXL) reported earnings on Jan. 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Hexcel beat expectations on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly, and earnings per share grew significantly.
Margins increased across the board.
Hexcel booked revenue of $351.8 million. The 12 analysts polled by S&P Capital IQ predicted revenue of $332.0 million. Sales were 14% higher than the prior-year quarter's $294.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.34. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.27 per share on the same basis. GAAP EPS of $0.39 for Q3 were 78% higher than the prior-year quarter's $0.22 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 24.1%, 240 basis points better than the prior-year quarter. Operating margin was 13.9%, 390 basis points better than the prior-year quarter. Net margin was 11.1%, 370 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $360.4 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $1.40 billion. The average EPS estimate is $1.22.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 258 members out of 274 rating the stock outperform, and 16 members rating it underperform. Among 76 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 74 give Hexcel a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hexcel is outperform, with an average price target of $28.43.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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