- Hexcel’s adjusted earnings per share (EPS) for Q3 is 47 cents, exceeding the estimate of 46 cents and above last year’s 38 cents.
- Net sales reached $456.5 million, marking an 8.8% increase year-over-year, but slightly below the estimated $460.2 million.
- Commercial Aerospace Sales rose by 17% year-over-year to $295.9 million, outperforming the estimated $282.5 million.
- Space & Defense Sales recorded a slight decline of 0.5% year-over-year to $128.2 million, below the anticipated $136.8 million.
- Industrial sales experienced a 16% decrease year-over-year, totaling $32.4 million, falling short of the $39.2 million estimate.
- Net income increased by 2.8% year-over-year to $39.8 million, surpassing the estimate of $37.3 million.
- Gross margin improved to 23.3% from last year’s 21.8%.
- The company maintains its annual sales forecast between $1.90 billion to $1.98 billion, aligning with the estimate of $1.92 billion.
- CEO Tom Gentile noted a 9% growth in total revenue, driven by strong performance in commercial aerospace.
- Hexcel anticipates that FY 2024 sales and adjusted EPS will be at the lower end of guidance ranges due to adjustments in customer production rates.
- The company expects to benefit from lower tax rates in the near term.
- Gentile highlighted a promising long-term growth outlook due to ongoing recovery in commercial aerospace production.
- Analyst recommendations for Hexcel include 5 buys, 13 holds, and 3 sells.
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Hexcel Corp on Smartkarma
Hexcel Corp‘s analyst coverage on Smartkarma by Baptista Research indicates a bullish sentiment in their report titled “Hexcel Corp – cCorporation: Initiation Of Coverage – Their Business Strategy.” The report delves into the company’s second quarter 2024 results, highlighting strong performance in various areas but also noting cautious revisions for future expectations due to emerging market conditions. Baptista Research‘s detailed analysis aims to outline both strengths and challenges discussed during the earnings call. Additionally, the report evaluates factors influencing the company’s price in the near future and conducts an independent valuation using a Discounted Cash Flow (DCF) methodology.
A look at Hexcel Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Hexcel Corp, a company that develops, manufactures, and markets reinforcement products and composite materials, has been given a high Growth score of 5 on the Smartkarma Smart Scores. This indicates a positive long-term outlook for the company in terms of expanding its business and increasing its market presence in various sectors such as aerospace, defense, electronics, industrial, and recreation markets. With a strong focus on growth, Hexcel Corp is positioned to capitalize on emerging opportunities and drive future success.
Although Hexcel Corp received moderate scores in Value, Resilience, and Momentum, the overall outlook remains optimistic. With a diversified product portfolio and a global presence, the company is well-equipped to navigate market fluctuations and capitalize on its strengths. While the Dividend score is on the lower side, the high Growth score underscores Hexcel Corp‘s potential for long-term growth and value creation for investors.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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