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) Q3 Earnings Beat Estimates, Revenues Up Y/Y
Read MoreHide Full Article
Hexcel Corporation (HXL - Free Report) reported third-quarter 2019 earnings of 90 cents per share, which surpassed the Zacks Consensus Estimate of 89 cents by 1.1%. The bottom line also improved 12.5% from the prior-year quarter’s 80 cents. The year-over-year upside can be attributed to robust sales and margin improvement.
The company reported GAAP earnings of 93 cents per share compared with the year-ago quarter’s 91 cents.
Total Sales
Net sales totaled $572.5 million, which missed the Zacks Consensus Estimate of $604 million by 5.2%. However, net sales improved 5.9% from the year-ago quarter’s $540.5 million on growth in the company’s Commercial Aerospace, and Space and Defense segments.
Operational Update
Hexcel’s gross margin was 27.6% in the third quarter, expanding 110 basis points year over year. The improvement reflects strong operational execution.
The company’s operating expenses amounted to $48 million in the third quarter compared with the year-ago quarter’s $46.5 million. Selling, general and administrative expenses grew 3.7%, while research and technology expenses rose 2.2%.
Segmental Performance
Commercial Aerospace: Net sales increased 3.4% year over year to $385.9 million. The uptick can be attributed to the strong performance of the Airbus A320neo, Airbus A350 and Boeing 787 programs.
Space and Defense: Net sales grew 21.5% year over year to $109.8 million, primarily owing to the growth in the F-35 Joint Strike Fighter program.
Industrial: Net sales declined 0.3% year over year to $76.8 million on low automotive sales.
Hexcel Corporation Price, Consensus and EPS Surprise
As of Sep 30, 2019, cash and cash equivalents were $47 million compared with $32.7 million as of Dec 31, 2018.
Long-term debt totaled $1,115.2 million as of Sep 30, 2019, up from $947.4 million as of Dec 31, 2018.
At the end of third-quarter 2019, cash generated from operating activities summed $277.3 million compared with $278.4 million generated at the end of third-quarter 2018.
The effective tax rate was 18.4% in the reported quarter compared with 9.1% in the third quarter of 2018. Free cash flow was $114.6 million for the first nine months of 2019 compared with $128.2 million for the same period last year.
2019 Guidance
For 2019, Hexcel lowered its sales guidance to $2.34-$2.40 billion from $2.38-$2.48 billion. The Zacks Consensus Estimate for full-year sales, pegged at $2.43 billion, lies above the company’s projected view.
Hexcel projects the adjusted earnings per share to be $3.43-$3.53 for the year. The Zacks Consensus Estimate for the company’s 2019 earnings, pegged at $3.52, toward the endpoint of the company’s guided range.
Hexcel expects free cash flow to exceed $250 million and accrual basis capital expenditures between $170 million and $190 million for 2019.
Leidos Holdings Inc. (LDOS - Free Report) , a Zacks Rank #3 stock, is set to report third-quarter 2019 results on Oct 29.
General Dynamics Corp. (GD - Free Report) , a Zacks Rank #3 stock, is scheduled to report third-quarter 2019 results on Oct 23.
Raytheon Company , a Zacks Rank #4 (Sell) stock, is scheduled to report third-quarter 2019 results on Oct 24.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.50% per year. So be sure to give these hand-picked 7 your immediate attention.
Image: Bigstock
Hexcel (HXL) Q3 Earnings Beat Estimates, Revenues Up Y/Y
Hexcel Corporation (HXL - Free Report) reported third-quarter 2019 earnings of 90 cents per share, which surpassed the Zacks Consensus Estimate of 89 cents by 1.1%. The bottom line also improved 12.5% from the prior-year quarter’s 80 cents. The year-over-year upside can be attributed to robust sales and margin improvement.
The company reported GAAP earnings of 93 cents per share compared with the year-ago quarter’s 91 cents.
Total Sales
Net sales totaled $572.5 million, which missed the Zacks Consensus Estimate of $604 million by 5.2%. However, net sales improved 5.9% from the year-ago quarter’s $540.5 million on growth in the company’s Commercial Aerospace, and Space and Defense segments.
Operational Update
Hexcel’s gross margin was 27.6% in the third quarter, expanding 110 basis points year over year. The improvement reflects strong operational execution.
The company’s operating expenses amounted to $48 million in the third quarter compared with the year-ago quarter’s $46.5 million. Selling, general and administrative expenses grew 3.7%, while research and technology expenses rose 2.2%.
Segmental Performance
Commercial Aerospace: Net sales increased 3.4% year over year to $385.9 million. The uptick can be attributed to the strong performance of the Airbus A320neo, Airbus A350 and Boeing 787 programs.
Space and Defense: Net sales grew 21.5% year over year to $109.8 million, primarily owing to the growth in the F-35 Joint Strike Fighter program.
Industrial: Net sales declined 0.3% year over year to $76.8 million on low automotive sales.
Hexcel Corporation Price, Consensus and EPS Surprise
Hexcel Corporation price-consensus-eps-surprise-chart | Hexcel Corporation Quote
Financial Details
As of Sep 30, 2019, cash and cash equivalents were $47 million compared with $32.7 million as of Dec 31, 2018.
Long-term debt totaled $1,115.2 million as of Sep 30, 2019, up from $947.4 million as of Dec 31, 2018.
At the end of third-quarter 2019, cash generated from operating activities summed $277.3 million compared with $278.4 million generated at the end of third-quarter 2018.
The effective tax rate was 18.4% in the reported quarter compared with 9.1% in the third quarter of 2018. Free cash flow was $114.6 million for the first nine months of 2019 compared with $128.2 million for the same period last year.
2019 Guidance
For 2019, Hexcel lowered its sales guidance to $2.34-$2.40 billion from $2.38-$2.48 billion. The Zacks Consensus Estimate for full-year sales, pegged at $2.43 billion, lies above the company’s projected view.
Hexcel projects the adjusted earnings per share to be $3.43-$3.53 for the year. The Zacks Consensus Estimate for the company’s 2019 earnings, pegged at $3.52, toward the endpoint of the company’s guided range.
Hexcel expects free cash flow to exceed $250 million and accrual basis capital expenditures between $170 million and $190 million for 2019.
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.
Upcoming Defense Releases
Leidos Holdings Inc. (LDOS - Free Report) , a Zacks Rank #3 stock, is set to report third-quarter 2019 results on Oct 29.
General Dynamics Corp. (GD - Free Report) , a Zacks Rank #3 stock, is scheduled to report third-quarter 2019 results on Oct 23.
Raytheon Company , a Zacks Rank #4 (Sell) stock, is scheduled to report third-quarter 2019 results on Oct 24.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.50% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>