The 10-second takeaway
For the quarter ended June 30 (Q2), Hexcel met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded significantly.
Margins grew across the board.
Hexcel booked revenue of $399.2 million. The 12 analysts polled by S&P Capital IQ hoped for a top line of $404.8 million on the same basis. 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 came in at $0.42. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.39 per share. 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.
For the quarter, gross margin was 26.4%, 180 basis points better than the prior-year quarter. Operating margin was 18.5%, 450 basis points better than the prior-year quarter. Net margin was 12.0%, 140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $400.9 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $1.61 billion. The average EPS estimate is $1.53.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 257 members out of 272 rating the stock outperform, and 15 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 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.
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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.