Hexcel Corp. (NYSE:HXL) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 3.25%.
Hexcel Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 10.26% to $0.43 in the quarter versus EPS of $0.39 in the year-earlier quarter.
Revenue: Rose 4.1% to $416.5 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Hexcel Corp. reported adjusted EPS income of $0.43 per share. By that measure, the company beat the mean analyst estimate of $0.41. It missed the average revenue estimate of $417.97 million.
Quoting Management: Mr. Berges, CEO, commented, “This was another good start to the year for Hexcel, as solid execution combined with continued strong aerospace sales delivered excellent results. For the quarter, our adjusted diluted EPS of $0.43 was 10.3% higher than last year, on a 3.9% increase in constant currency sales. Our commercial aerospace and space and defense sales were again up over 10%, and helped offset the nearly 30% decline in industrial sales.”
Key Stats (on next page)…
Revenue increased 7.54% from $387.3 million in the previous quarter. EPS increased 19.44% from $0.36 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.45 to a profit $0.46. For the current year, the average estimate is a profit of $1.77, which is the same with that ninety days ago.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)