It's Showtime for Hexcel (HXL)

It's Showtime for Hexcel

Hexcel (NYSE: HXL ) is expected to report Q3 earnings on Oct. 22. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Hexcel's revenues will grow 11.4% and EPS will increase 5.9%.

The average estimate for revenue is $391.8 million. On the bottom line, the average EPS estimate is $0.36.

Revenue details
Last quarter, Hexcel booked revenue of $399.2 million. GAAP reported sales were 13% higher than the prior-year quarter's $353.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.42. GAAP EPS of $0.47 for Q2 were 27% higher than the prior-year quarter's $0.37 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 26.4%, 180 basis points better than the prior-year quarter. Operating margin was 16.1%, 210 basis points better than the prior-year quarter. Net margin was 12.0%, 140 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.59 billion. The average EPS estimate is $1.54.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 261 members out of 276 rating the stock outperform, and 15 members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 54 give Hexcel a green thumbs-up, and one 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 $31.23.

Add Hexcel to My Watchlist.

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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. 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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