Financial Performance - Revenue for Q4 2024 was $473.8 million, up 3.6% YoY [1] - EPS was $0.52, compared to $0.43 in the year-ago quarter [1] - Revenue beat Zacks Consensus Estimate by 0.61% ($470.93 million) [1] - EPS beat consensus estimate by 1.96% ($0.51) [1] Stock Performance - Shares returned +9% over the past month, outperforming Zacks S&P 500 composite's +2.1% change [3] - Current Zacks Rank is 3 (Hold), indicating potential to perform in line with broader market [3] Segment Performance Commercial Aerospace - Composite Materials sales: $233.80 million, +2.6% YoY, missed estimate by 2.3% ($239.32 million) [4] - Engineered Products sales: $44.50 million, +12.1% YoY, beat estimate by 9.5% ($40.65 million) [4] - Total sales: $278.30 million, +4% YoY, beat estimate by 1.8% ($273.36 million) [4] Space & Defense - Composite Materials sales: $110.20 million, -2% YoY, missed estimate by 8% ($119.80 million) [4] - Engineered Products sales: $53.10 million, +33.4% YoY, beat estimate by 15% ($46.16 million) [4] - Total sales: $163.30 million, +7.2% YoY, beat estimate by 1.8% ($160.49 million) [4] Industrial - Composite Materials sales: $31.30 million, -14.7% YoY, missed estimate by 11.4% ($35.33 million) [4] - Engineered Products sales: $0.90 million, +200% YoY, beat estimate by 2.3% ($0.88 million) [4] - Total sales: $32.20 million, -14.6% YoY, missed estimate by 8.1% ($35.04 million) [4] Product Category Performance - Composite Materials total sales: $395.50 million, +0.5% YoY, beat estimate by 0.3% ($394.45 million) [4] - Engineered Products total sales: $98.70 million, +21.6% YoY, beat estimate by 12.6% ($87.65 million) [4] Operating Performance - Composite Materials operating income: $20.70 million, significantly below estimate of $61.66 million [4]

Company Performance - Hexcel reported quarterly earnings of $0.52 per share, exceeding the Zacks Consensus Estimate of $0.51 per share, and up from $0.43 per share a year ago, representing an earnings surprise of 1.96% [1] - The company posted revenues of $473.8 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.61%, and an increase from year-ago revenues of $457.5 million [2] - Over the last four quarters, Hexcel has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance - Hexcel shares have increased approximately 9.2% since the beginning of the year, compared to the S&P 500's gain of 2.9% [3] - The current consensus EPS estimate for the coming quarter is $0.46 on revenues of $484.78 million, and for the current fiscal year, it is $2.33 on revenues of $2 billion [7] Industry Outlook - The Aerospace - Defense Equipment industry, to which Hexcel belongs, is currently in the top 28% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Hexcel's stock performance [5]

Financial Performance - Q4 2024 net sales were $474 million, a 3.6% increase from $458 million in Q4 2023[4] - FY 2024 sales reached $1,903 million, up 6.4% from $1,789 million in FY 2023[13] - Adjusted diluted EPS for FY 2024 was $2.03, a 12.2% increase from $1.81 in FY 2023[4] - Net income for the year 2024 was $132.1 million, compared to $105.7 million in 2023, indicating a 25% year-over-year growth[30] - The company reported a GAAP net income of $132.1 million for 2024, up from $105.7 million in 2023, with an EPS of $1.59 compared to $1.24[36] Cash Flow and Dividends - Free cash flow for FY 2024 was $203 million, compared to $148.9 million in FY 2023[19] - Free cash flow for the year ended December 31, 2024, was $202.9 million, an increase from $148.9 million in 2023[36] - The Board of Directors declared a quarterly dividend of $0.17 per share, a 13% increase[4] - The company repurchased $252.2 million of common stock in 2024, compared to $30.1 million in 2023, indicating a significant increase in shareholder return initiatives[30] Sales by Segment - Commercial aerospace sales for FY 2024 were $1,194.2 million, an 11.8% increase from FY 2023[14] - Space & Defense sales for FY 2024 were $569.5 million, a 4.5% increase from FY 2023[15] - Total industrial sales for FY 2024 decreased 20.9% to $139.3 million compared to FY 2023[16] - Commercial Aerospace segment sales for 2024 were $1,194.2 million, up 11.8% from $1,068.2 million in 2023, representing 62.8% of total net sales[31] - Space & Defense segment sales increased by 4.5% to $569.5 million in 2024 from $544.8 million in 2023, accounting for 29.9% of total net sales[34] - Industrial segment sales decreased by 20.9% to $139.3 million in 2024 from $176.0 million in 2023, representing 7.3% of total net sales[34] Margins and Operating Income - Gross margin for FY 2024 was 24.7%, up from 24.2% in FY 2023[17] - Gross margin improved to 25.0% in Q4 2024, up from 22.5% in Q4 2023, reflecting better cost management[28] - The operating income for the fourth quarter of 2024 was $8.9 million, down from $47.6 million in the fourth quarter of 2023, resulting in an operating margin of 1.9%[34] - Non-GAAP operating income for the year ended December 31, 2024, was $236.1 million, compared to $216.7 million in 2023[36] Assets and Liabilities - Total assets decreased to $2,725.6 million in 2024 from $2,918.5 million in 2023, primarily due to a reduction in cash and cash equivalents[29] - Cash and cash equivalents at the end of 2024 were $125.4 million, down from $227.0 million at the end of 2023[30] - Total liabilities remained relatively stable at $1,197.7 million in 2024, compared to $1,202.0 million in 2023[29] - Total long-term debt as of December 31, 2024 was $700.6 million, compared to $699.4 million in 2023[40] - Total debt, net of cash, was $575.3 million as of December 31, 2024, a decrease from $472.5 million in 2023[40] Future Outlook - 2025 sales guidance projects growth of approximately 10% year-over-year in commercial aerospace[5] - The company anticipates continued challenges from macroeconomic factors and geopolitical issues impacting future performance[26] - Hexcel plans to continue focusing on its Commercial Aerospace and Space & Defense markets for future growth and expansion strategies[31] Research and Development - Research and technology expenses increased to $57.1 million in 2024, up from $52.7 million in 2023, reflecting ongoing investment in innovation[28] Special Items and Adjustments - The year ended December 31, 2024 included a discrete tax benefit related to adjustments to the provision based on the finalization of prior year tax returns[38] - Adjusted operating income and adjusted net income are considered meaningful non-GAAP measures for understanding underlying operating results[39] - Special items in the financial results represent significant charges or credits that are important for understanding overall operating results[39]

If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.I covered Hexcel (NYSE: HXL ) in July 2024 and assigned a hold rating to Hexcel stock based on a set of challenges that affect the upside for the company. Since then, the stock has gained 6.2% while the S&PDhierin runs the investing group The Aeros ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Hexcel (HXL) . This company, which is in the Zacks Aerospace - Defense Equipment industry, shows potential for another earnings beat.This maker of lightweight composite materials has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise ...

In its upcoming report, Hexcel (HXL) is predicted by Wall Street analysts to post quarterly earnings of $0.51 per share, reflecting an increase of 18.6% compared to the same period last year. Revenues are forecasted to be $475.43 million, representing a year-over-year increase of 3.9%.The current level reflects a downward revision of 11.5% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial pro ...

The market expects Hexcel (HXL) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on January 22, 2025, might help the stock move higher if these key numbers are be ...

Boeing's Impact on Hexcel - Boeing's struggles in 2024 significantly affected Hexcel, a major supplier of carbon fiber materials, leading to a 15% decline in Hexcel's shares despite the S&P 500 rising by 23% [1] - Boeing, a key customer accounting for nearly two-thirds of Hexcel's revenue, reduced its material purchases due to manufacturing and engineering issues, causing a government-ordered slowdown in aircraft production [2][3] - Hexcel was forced to lower its financial expectations for 2024 and withdraw its long-term guidance for double-digit compound annual revenue growth through 2026 due to Boeing's reduced demand [4] Hexcel's Business and Market Position - Hexcel specializes in producing lightweight carbon fiber materials, which are essential for fuel-efficient aircraft and other large equipment, with commercial aerospace making up nearly two-thirds of its revenue [2] - Despite the slump, Hexcel's composite materials remain a critical component of the new plane supply chain, with Airbus forecasting demand for over 42,000 new aircraft deliveries in the next 20 years [7] Investor Sentiment and Capital Management - Investors exited Hexcel in 2024 due to the uncertainty surrounding Boeing's recovery timeline and the lack of control Hexcel management had over external factors [5] - Hexcel managed to return capital to investors by reducing its share count by 4% over the past year and 16% over the past decade, while also paying a modest dividend yielding about 1% [6] Future Outlook - While Hexcel's long-term potential remains strong, the timing of demand recovery is uncertain, and investors will need to wait for Boeing's recovery to see Hexcel's business rebound [7][8]

Core Viewpoint - Hexcel Corporation reported strong Q3 earnings, surpassing estimates, but the stock has underperformed the S&P 500, raising questions about future performance leading up to the next earnings release [1][2][3]. Financial Performance - Adjusted earnings for Q3 2024 were 47 cents per share, a 23.7% increase from 38 cents in the same quarter last year [2]. - GAAP earnings were 49 cents per share, up 8.9% from 45 cents year-over-year [3]. - Total net sales reached $456.5 million, exceeding the Zacks Consensus Estimate of $456.2 million by 0.1% and reflecting an 8.8% increase from $419.5 million in the prior year [4]. Sales Breakdown - Sales in the Commercial Aerospace sector increased by 17.5% year-over-year to $295.9 million, driven by A350, A320neo, and Boeing 787 programs [8]. - Space and Defense sales decreased by 0.5% to $128.2 million due to lower sales from Bell V-22 and space programs [8]. - Industrial sales fell by 16.5% to $32.4 million, attributed to declines in submarkets [8]. Operational Metrics - Gross margin improved to 23.3%, a 150 basis point increase from the previous year, due to favorable cost leverage from higher sales [6]. - Adjusted operating income rose to $52.9 million from $42.8 million year-over-year [7]. Cash Flow and Debt - Cash and cash equivalents as of September 30, 2024, were $98.2 million, down from $227 million at the end of 2023 [9]. - Long-term debt increased to $805.1 million from $699.4 million at the end of 2023 [9]. - Cash flow from operating activities for the first nine months of 2024 was $127.3 million, compared to $98.1 million in the same period last year [9]. Guidance and Estimates - Hexcel has adjusted its 2024 sales guidance to the lower end of the previous range of $1.90-$1.98 billion, with the Zacks Consensus Estimate at $1.91 billion [11]. - The company expects adjusted earnings per share to be at the lower end of the range of $2.02-$2.18, with the current consensus at $2.05 [11]. - Free cash flow is projected to be approximately $200 million in 2024, with capital expenditure expected to remain below $100 million [12]. Market Sentiment - Recent estimates have trended downward, with a consensus estimate shift of -7.11% [13][14]. - Hexcel currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of below-average returns in the coming months [16].

Hexcel Corporation (HXL) reported third-quarter 2024 adjusted earnings of 47 cents per share, which improved 23.7% from the year-ago quarter’s figure of 38 cents.The bottom line also surpassed the Zacks Consensus Estimate of 46 cents by 2.2%.The company reported GAAP earnings of 49 cents per share, which increased 8.9% from the year-ago quarter’s figure of 45 cents. The year-over-year bottom line improvement can be attributed to higher net sales and operating income compared with the prior-year quarter.Tota ...