The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Hexcel met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.
Margins increased across the board.
Hexcel chalked up revenue of $391.6 million. The 11 analysts polled by S&P Capital IQ hoped for revenue of $392.7 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $351.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.39. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.36 per share. GAAP EPS of $0.39 for Q3 were 22% higher than the prior-year quarter's $0.32 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 25.3%, 70 basis points better than the prior-year quarter. Operating margin was 15.3%, 220 basis points better than the prior-year quarter. Net margin was 10.2%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $397.4 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $1.59 billion. The average EPS estimate is $1.54.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 262 members out of 277 rating the stock outperform, and 15 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give Hexcel a green thumbs-up, and 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 $30.17.
- Add Hexcel to My Watchlist.