The 10-second takeaway
For the quarter ended June 30 (Q2), Hexcel met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. GAAP earnings per share grew.
Gross margins expanded, operating margins grew, net margins dropped.
Hexcel notched revenue of $422.6 million. The 13 analysts polled by S&P Capital IQ expected a top line of $424.3 million on the same basis. GAAP reported sales were 5.9% higher than the prior-year quarter's $399.2 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 $0.48. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.47 per share. GAAP EPS of $0.48 for Q2 were 2.1% higher than the prior-year quarter's $0.47 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 27.6%, 120 basis points better than the prior-year quarter. Operating margin was 17.0%, 90 basis points better than the prior-year quarter. Net margin was 11.5%, 50 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $428.4 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $1.71 billion. The average EPS estimate is $1.81.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 270 members out of 286 rating the stock outperform, and 16 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 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 $35.00.
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