A Look Ahead: Hexcel's Earnings Forecast

Hexcel (NYSE:HXL) will release its quarterly earnings report on Monday, 2024-10-21. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Hexcel to report an earnings per share (EPS) of $0.47.

Anticipation surrounds Hexcel's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Earnings History Snapshot

In the previous earnings release, the company beat EPS by $0.04, leading to a 0.26% increase in the share price the following trading session.

Here's a look at Hexcel's past performance and the resulting price change:

Quarter	Q2 2024	Q1 2024	Q4 2023	Q3 2023
EPS Estimate	0.56	0.41	0.49	0.43
EPS Actual	0.60	0.44	0.43	0.38
Price Change %	0.0%	2.0%	-8.0%	-8.0%

Stock Performance

Shares of Hexcel were trading at $62.25 as of October 17. Over the last 52-week period, shares are down 2.8%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Analyst Observations about Hexcel

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Hexcel.

With 6 analyst ratings, Hexcel has a consensus rating of Neutral. The average one-year price target is $67.0, indicating a potential 7.63% upside.

Analyzing Ratings Among Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of Rocket Lab USA and AeroVironment, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• For Rocket Lab USA, analysts project an Outperform trajectory, with an average 1-year price target of $7.12, indicating a potential 88.56% downside.
• The consensus outlook from analysts is an Outperform trajectory for AeroVironment, with an average 1-year price target of $224.0, indicating a potential 259.84% upside.

Overview of Peer Analysis

The peer analysis summary offers a detailed examination of key metrics for Rocket Lab USA and AeroVironment, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
Hexcel	Neutral	10.15%	$126.60M	3.12%
Rocket Lab USA	Outperform	71.25%	$27.16M	-8.91%
AeroVironment	Outperform	24.38%	$81.47M	2.54%

Key Takeaway:

Hexcel is positioned in the middle among its peers for revenue growth. It ranks at the bottom for gross profit. In terms of return on equity, Hexcel is placed in the middle compared to its peers.

Get to Know Hexcel Better

Founded in 1948, Hexcel designs and manufactures a range of highly engineered composite fibers, fabrics, resins, and structures for use in commercial aerospace, defense, and other industrial markets. These are lighter than metal and perform under rigorous conditions in aircraft frames, wings, engines, and other components and subassemblies. The company's name derives from the six-sided honeycomb structures that lend many of its products their light weight and rigidity. Hexcel's biggest customers are Airbus (38% of 2022 sales) and Boeing (25% of prepandemic sales) and its respective subcontractors.

A Deep Dive into Hexcel's Financials

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Over the 3 months period, Hexcel showcased positive performance, achieving a revenue growth rate of 10.15% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Hexcel's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 9.99%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 3.12%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Hexcel's ROA excels beyond industry benchmarks, reaching 1.77%. This signifies efficient management of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.51, Hexcel adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Hexcel visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.