Hexcel Earnings: Here’s Why the Stock is Falling Now

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 down 0.73%.

Hexcel Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 14.29% to $0.48 in the quarter versus EPS of $0.42 in the year-earlier quarter.

Revenue: Rose 5.86% to $422.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Hexcel Corp. reported adjusted EPS income of $0.48 per share. By that measure, the company beat the mean analyst estimate of $0.47. It missed the average revenue estimate of $423.82 million.

Quoting Management: Mr. Berges commented, “This was another strong quarter for Hexcel, as solid execution combined with increased sales to yield excellent results. For the quarter, our adjusted diluted EPS of $0.48 was 14% higher than last year on a 5% increase in constant currency sales. We are also particularly pleased that our adjusted operating income was 17.0% of net sales for the quarter, 90 basis points better than last year. This quarter also marked the first flight of the A350 XWB the newest Airbus offering with over 50% composite structure. The A350 XWB will be a key contributor to Hexcel’s future and involves shipments to over 40 customers in 14 different countries.”

Key Stats (on next page)…

Revenue increased 1.46% from $416.5 million in the previous quarter. EPS increased 11.63% from $0.43 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 has moved up from a profit of $1.77 to a profit of $1.81 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)