The 10-second takeaway
For the quarter ended March 31 (Q1), Hexcel beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Margins improved across the board.
Hexcel tallied revenue of $400.1 million. The 14 analysts polled by S&P Capital IQ wanted to see revenue of $372.6 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $331.6 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 13 earnings estimates compiled by S&P Capital IQ averaged $0.33 per share. GAAP EPS of $0.39 for Q1 were 50% higher than the prior-year quarter's $0.26 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 26.6%, 160 basis points better than the prior-year quarter. Operating margin was 15.1%, 260 basis points better than the prior-year quarter. Net margin was 9.9%, 190 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $391.4 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $1.55 billion. The average EPS estimate is $1.41.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 254 members out of 269 rating the stock outperform, and 15 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 gives 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 $29.29.
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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. 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.