Core Viewpoint - Hexcel Corporation is set to release its third-quarter earnings results on October 21, with expectations of improved earnings and revenue compared to the previous year [1] Financial Performance - Analysts predict Hexcel will report earnings of 46 cents per share, an increase from 38 cents per share in the same quarter last year [1] - The projected revenue for the recent quarter is $456.9 million, up from $427.28 million a year earlier [1] Analyst Ratings - Truist Securities analyst Michael Ciarmoli maintained a Buy rating but reduced the price target from $78 to $76 [2] - Vertical Research analyst Robert Stallard downgraded the stock from Buy to Hold with a price target of $65 [2] - Deutsche Bank analyst Scott Deuschle maintained a Hold rating and lowered the price target from $65 to $62 [2] - BMO Capital analyst John McNulty maintained a Market Perform rating and cut the price target from $71 to $70 [2] - RBC Capital analyst Ken Herbert downgraded the stock from Outperform to Sector Perform and reduced the price target from $76 to $68 [2]

Core Insights - Hexcel (HXL) is expected to report quarterly earnings of $0.46 per share, reflecting a 21.1% increase year-over-year, with revenues forecasted at $456.18 million, an 8.7% increase from the previous year [1] - The consensus EPS estimate has been revised down by 5.1% over the last 30 days, indicating a reevaluation by analysts [1][2] Revenue Estimates - Analysts estimate 'Net Sales- Commercial Aerospace- Composite Materials' at $235.91 million, a year-over-year increase of 10.9% [4] - The forecast for 'Net Sales- Space & Defense- Composite Materials' is $92.79 million, indicating a 3.1% increase year-over-year [4] - 'Net Sales- Industrial- Composite Materials' is projected to reach $38.05 million, reflecting a 0.7% increase [4] Engineered Products Estimates - 'Net Sales- Commercial Aerospace- Engineered Products' is expected to be $42.22 million, a 7.7% increase from the prior year [5] - 'Net Sales- Space & Defense- Engineered Products' is projected at $42.50 million, indicating a 9.5% increase [5] - Total 'Net Sales- Engineered Products' is forecasted to be $86.00 million, reflecting an 8.6% increase year-over-year [5] Composite Materials and Total Sales - 'Net Sales- Composite Materials' is estimated at $366.79 million, a 2.8% increase year-over-year [6] - 'Net Sales- Space & Defense- Total' is projected to reach $135.19 million, indicating a 5% increase [6] - 'Net Sales- Industrial- Total' is expected to be $39.58 million, reflecting a 2% increase [6] Operating Income Estimates - 'Operating income- Composite Materials' is expected to reach $61.04 million, up from $43.70 million year-over-year [7] - 'Operating income- Engineered Products' is projected at $11.43 million, compared to $6.20 million from the previous year [8] Stock Performance - Hexcel shares have remained unchanged over the past month, contrasting with the Zacks S&P 500 composite's 3.5% increase [8] - The company holds a Zacks Rank 4 (Sell), indicating expected underperformance relative to the overall market in the near term [8]

Rathke Investment Summary Hexcel (NYSE:HXL) is a leading manufacturer of advanced composite materials (carbon fiber) for commercial aerospace, defense, and industrial end markets. They operate globally with manufacturing facilities across the Americas, Europe, Asia, India, and Africa. Hexcel holds the #1 position in aerospace composite sales and production capacity and carries a wide range of trademark products. Three factors drive Hexcel's value. 1) its ability to sell composite materials to commercial aer ...

Group 1: ON Semiconductor - ON Semiconductor has faced near-term headwinds due to its significant exposure to the automotive and industrial markets, which account for over 79% of total revenue, and are weak in 2024 [4][3] - The company is investing up to $2 billion in a new silicon carbide (SiC) manufacturing facility in Europe to support long-term growth, particularly in electric vehicles [5] - Despite a projected 13.4% decline in full-year sales for 2024, management's guidance for third-quarter revenue suggests a sequential improvement, with expected revenue growth of 8.4% in 2025 [6] Group 2: Hexcel - Hexcel's revenue is heavily reliant on Airbus and Boeing, with 39% and 15% of sales coming from these companies respectively, but has faced challenges due to delivery delays and reduced delivery expectations [7] - The company has lowered its full-year revenue guidance for 2024 to $1.9 billion-$1.98 billion, impacting margins as it had prepared for higher delivery volumes [8] - Long-term growth is supported by the increasing use of advanced composites in newer aircraft, with a projected need for 43,975 new airplanes over the next 20 years [9] Group 3: Keysight Technologies - Keysight Technologies provides hardware, software, and services that assist customers in designing and optimizing their products, with a long-term growth expectation of 5% to 7% annually [11][12] - The company is currently facing challenges due to a pullback in R&D spending amid a slowing economy, leading to an expected sales decline of nearly 10% in 2024 [13] - Despite these challenges, Keysight is attractively priced at slightly less than 23 times expected 2024 earnings, with potential for strong recovery when R&D spending rebounds [14]

Core Viewpoint - Hexcel Corporation (HXL) reported a strong second quarter for 2024, with earnings and sales exceeding expectations, although the company has slightly lowered its guidance for the year [11][25][26]. Financial Performance - HXL's second-quarter earnings were 60 cents per share, a 20% increase from 50 cents in the same quarter last year [25]. - The company's net sales for the second quarter totaled $500.4 million, surpassing the Zacks Consensus Estimate of $482 million by 3.8% and reflecting a 10.1% year-over-year improvement from $454.3 million [26]. - Hexcel's gross margin improved to 25.3%, up 90 basis points from the prior year, attributed to favorable cost leverage from higher sales [12]. - Adjusted operating income was $72 million, compared to $61.8 million in the previous year [18]. - Cash and cash equivalents decreased to $75.4 million as of June 30, 2024, down from $227 million at the end of 2023 [4]. Sales Breakdown - Commercial Aerospace segment saw net sales increase by 21.3% year-over-year to $320.7 million, driven by growth in widebody and narrowbody sales [3]. - Space and Defense segment reported a 1% year-over-year increase in net sales to $138.9 million, supported by strong military helicopter sales [13]. - Industrial segment experienced a decline, with net sales decreasing by 22.3% year-over-year to $40.8 million due to a downturn in other sub-markets [27]. Guidance and Outlook - Hexcel has adjusted its 2024 sales guidance to a range of $1.90-$1.98 billion, down from the previous range of $1.93-$2.03 billion, with the Zacks Consensus Estimate at $1.94 billion [11]. - The company now expects adjusted earnings per share in the range of $2.02-$2.18 for 2024, lower than the prior guidance of $2.10-$2.30 [15][21]. - Free cash flow is projected to be approximately $200 million for 2024, consistent with previous guidance of more than $200 million [29]. Debt and Cash Flow - Long-term debt increased to $794.9 million as of June 30, 2024, up from $699.4 million at the end of 2023 [14]. - Adjusted free cash outflow was $14.4 million, an improvement from $44.7 million in the year-ago period [20]. - Cash flow from operating activities for the first half of 2024 was $37.2 million, compared to $30.1 million in the same period last year [28].

This quarterly report represents an earnings surprise of 9.09%. A quarter ago, it was expected that this maker of lightweight composite materials would post earnings of $0.44 per share when it actually produced earnings of $0.44, delivering no surprise. Hexcel shares have lost about 7.9% since the beginning of the year versus the S&P 500's gain of 17.2%. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only d ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2024 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 1-8472 Hexcel Corporation (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of Incorporation or Organization) ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |---------------------------------------------------------------------------------------------|-------|------------------|-------|---------|---------------------------|-------|--------------------|-------|------------------------------------------|-------|-------------------------------------|----------------------| | Six Months Ended June 30, 2024 and 2023 \n(In millions) \nMarket \nCommercial Aerospace | | \n2024 \n620.0 | $ | ...

Zacks Consensus Estimate The earnings report, which is expected to be released on July 18, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. This maker of lightweight composite materials is expected to post quarterly earnings of $0.56 per share in its upcoming report, which represents a year-over-year change of +12%. Estimate Revisions Trend Investors should keep in mind that the direction of estimate revision ...

Matthieu Douhaire /iStock Editorial via Getty Images I have covered Hexcel (XCL) for several years now, and while I'm bullish on the company's prospects, the reality is that the stock price has gone nowhere but down over the past few years. More recently, there have been some changes that I'm also not quite impressed with. So, I believe it's a good time for me to carefully reconsider my buy rating for the business in a balanced way. Hexcel CEO Change Adds To Risks One thing that I'm not impressed with about ...