We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Hexcel (HXL) Stock Down Following Q4 Earnings Beat, Sales Up
Read MoreHide Full Article
The share price of Hexcel Corporation (HXL - Free Report) dropped 4.2% to reach $49.30 on Jan 27, 2022, following its fourth-quarter 2021 and full-year results released on Jan 26.
The company reported fourth-quarter 2021 adjusted earnings of 16 cents per share, which exceeded the Zacks Consensus Estimate of 12 cents by 33.3%.
The bottom line also improved from a loss of 18 cents per share incurred in the year-ago quarter.
In the quarter under review, the company posted GAAP earnings of 22 cents against the prior-year quarter’s loss figure of 23 cents.
For full-year 2021, Hexcel posted adjusted earnings of 27 cents per share, which exceeded the Zacks Consensus Estimate of 23 cents by 17.4%. The bottom line also improved 8% from the year-ago figure.
Hexcel Corporation Price, Consensus and EPS Surprise
Net sales during the fourth quarter totaled $360.3 million, which beat the Zacks Consensus Estimate of $342 million by 5.5%. Moreover, the top line witnessed an improvement of 21.8% from the year-ago quarter’s $295.8 million.
For full-year 2021, the company generated sales worth $1.33 billion, which beat the Zacks Consensus Estimate of $1.32 billion by 0.8%. Moreover, the top line witnessed a decline of 11.8% from the year-ago quarter’s $1.50 billion.
Operational Update
Hexcel's gross margin for the fourth quarter was 19.2% compared with 10.3% in the prior-year period, driven by increased sales.
Selling, general and administrative expenses rose 24.7%, whereas research and technology expenses for the fourth quarter of 2021 increased 9.4% year over year.
The company’s adjusted operating income amounted to $25.2 million in the quarter against an adjusted operating loss of $6.1 million incurred in the year-ago period.
Segmental Performance
Commercial Aerospace: Net sales increased 57.6% year over year to $199.7 million, driven by higher narrowbody sales, increased Airbus A350 sales and higher business jet sales.
Space and Defense: Net sales declined 11.5% year over year to $105.9 million. The decrease can be attributed to lower military and civilian rotorcraft sales and lower Space sales.
Industrial: Net sales increased 10.7% year over year to $54.7 million, primarily driven by strength in the automotive and recreation markets as well as other industrial markets.
Financial Details
As of Dec 31, 2021, cash and cash equivalents were $127.7 million compared with $103.3 million as of Dec 31, 2020.
Long-term debt totaled $822.4 million as of Dec 31, 2021, down from $925.5 million as of 2020-end.
At the end of 2021, cash generated from operating activities was $151.7 million compared with $264.3 million in the prior year.
Hexcel’s adjusted free cash outflow at the end of 2021 was $123.8 million compared with $213.7 million at the end of 2020.
2022 Guidance
The company provided its 2022 financial guidance.
Hexcel currently expects to generate sales in the range of $1.50-$1.63 billion during 2022. The Zacks Consensus Estimate for sales, pegged at $1.59 billion, lies above the mid-point of the guidance range.
The company projects to generate adjusted earnings per share in the range of $1.00-$1.24 in 2022. The Zacks Consensus Estimate for sales, pegged at $1.34, lies above the guidance range.
Lockheed Martin (LMT - Free Report) reported fourth-quarter 2021 adjusted earnings of $7.24 per share, which surpassed the Zacks Consensus Estimate of $7.23 by 0.1%. Its net sales amounted to $17.73 billion, which outpaced the Zacks Consensus Estimate by 0.4%.
Lockheed Martin ended 2021 (on Dec 31, 2021,) with $135.36 billion in backlog compared with $147.13 billion at the end of 2020. Its cash from operations at the end of 2021 amounted to $9.22 billion compared with $8.18 billion a year ago.
Raytheon Technologies’ (RTX - Free Report) fourth-quarter 2021 adjusted earnings per share (EPS) of $1.08 beat the Zacks Consensus Estimate of $1.01 by 6.9%. Its sales of $17,044 million missed the Zacks Consensus Estimate of $17,215 million by 1%.
Raytheon Technologies had cash and cash equivalents of $7,832 million as of Dec 31, 2021, compared with $8,802 million as of Dec 31, 2020. The company currently projects adjusted EPS in the range of $4.60-$4.80 for 2022.
Boeing (BA - Free Report) incurred an adjusted loss of $7.69 per share for fourth-quarter 2021, much wider than the Zacks Consensus Estimate of a loss of 9 cents. Its revenues amounted to $14.79 billion, which missed the Zacks Consensus Estimate of $16.96 billion by 12.8%.
Boeing’s backlog at the end of fourth-quarter 2021 increased to $377.50 billion from $363.40 billion at the end of 2020. The company’s operating cash outflow at the end of 2021 was $3.42 billion compared with $18.41 billion at the end of 2020.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Hexcel (HXL) Stock Down Following Q4 Earnings Beat, Sales Up
The share price of Hexcel Corporation (HXL - Free Report) dropped 4.2% to reach $49.30 on Jan 27, 2022, following its fourth-quarter 2021 and full-year results released on Jan 26.
The company reported fourth-quarter 2021 adjusted earnings of 16 cents per share, which exceeded the Zacks Consensus Estimate of 12 cents by 33.3%.
The bottom line also improved from a loss of 18 cents per share incurred in the year-ago quarter.
In the quarter under review, the company posted GAAP earnings of 22 cents against the prior-year quarter’s loss figure of 23 cents.
For full-year 2021, Hexcel posted adjusted earnings of 27 cents per share, which exceeded the Zacks Consensus Estimate of 23 cents by 17.4%. The bottom line also improved 8% from the year-ago figure.
Hexcel Corporation Price, Consensus and EPS Surprise
Hexcel Corporation price-consensus-eps-surprise-chart | Hexcel Corporation Quote
Total Sales
Net sales during the fourth quarter totaled $360.3 million, which beat the Zacks Consensus Estimate of $342 million by 5.5%. Moreover, the top line witnessed an improvement of 21.8% from the year-ago quarter’s $295.8 million.
For full-year 2021, the company generated sales worth $1.33 billion, which beat the Zacks Consensus Estimate of $1.32 billion by 0.8%. Moreover, the top line witnessed a decline of 11.8% from the year-ago quarter’s $1.50 billion.
Operational Update
Hexcel's gross margin for the fourth quarter was 19.2% compared with 10.3% in the prior-year period, driven by increased sales.
Selling, general and administrative expenses rose 24.7%, whereas research and technology expenses for the fourth quarter of 2021 increased 9.4% year over year.
The company’s adjusted operating income amounted to $25.2 million in the quarter against an adjusted operating loss of $6.1 million incurred in the year-ago period.
Segmental Performance
Commercial Aerospace: Net sales increased 57.6% year over year to $199.7 million, driven by higher narrowbody sales, increased Airbus A350 sales and higher business jet sales.
Space and Defense: Net sales declined 11.5% year over year to $105.9 million. The decrease can be attributed to lower military and civilian rotorcraft sales and lower Space sales.
Industrial: Net sales increased 10.7% year over year to $54.7 million, primarily driven by strength in the automotive and recreation markets as well as other industrial markets.
Financial Details
As of Dec 31, 2021, cash and cash equivalents were $127.7 million compared with $103.3 million as of Dec 31, 2020.
Long-term debt totaled $822.4 million as of Dec 31, 2021, down from $925.5 million as of 2020-end.
At the end of 2021, cash generated from operating activities was $151.7 million compared with $264.3 million in the prior year.
Hexcel’s adjusted free cash outflow at the end of 2021 was $123.8 million compared with $213.7 million at the end of 2020.
2022 Guidance
The company provided its 2022 financial guidance.
Hexcel currently expects to generate sales in the range of $1.50-$1.63 billion during 2022. The Zacks Consensus Estimate for sales, pegged at $1.59 billion, lies above the mid-point of the guidance range.
The company projects to generate adjusted earnings per share in the range of $1.00-$1.24 in 2022. The Zacks Consensus Estimate for sales, pegged at $1.34, lies above the guidance range.
Zacks Rank
Hexcel currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Lockheed Martin (LMT - Free Report) reported fourth-quarter 2021 adjusted earnings of $7.24 per share, which surpassed the Zacks Consensus Estimate of $7.23 by 0.1%. Its net sales amounted to $17.73 billion, which outpaced the Zacks Consensus Estimate by 0.4%.
Lockheed Martin ended 2021 (on Dec 31, 2021,) with $135.36 billion in backlog compared with $147.13 billion at the end of 2020. Its cash from operations at the end of 2021 amounted to $9.22 billion compared with $8.18 billion a year ago.
Raytheon Technologies’ (RTX - Free Report) fourth-quarter 2021 adjusted earnings per share (EPS) of $1.08 beat the Zacks Consensus Estimate of $1.01 by 6.9%. Its sales of $17,044 million missed the Zacks Consensus Estimate of $17,215 million by 1%.
Raytheon Technologies had cash and cash equivalents of $7,832 million as of Dec 31, 2021, compared with $8,802 million as of Dec 31, 2020. The company currently projects adjusted EPS in the range of $4.60-$4.80 for 2022.
Boeing (BA - Free Report) incurred an adjusted loss of $7.69 per share for fourth-quarter 2021, much wider than the Zacks Consensus Estimate of a loss of 9 cents. Its revenues amounted to $14.79 billion, which missed the Zacks Consensus Estimate of $16.96 billion by 12.8%.
Boeing’s backlog at the end of fourth-quarter 2021 increased to $377.50 billion from $363.40 billion at the end of 2020. The company’s operating cash outflow at the end of 2021 was $3.42 billion compared with $18.41 billion at the end of 2020.