A Peek at Hexcel's Future Earnings

Hexcel HXL is gearing up to announce its quarterly earnings on Monday, 2024-10-21. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Hexcel will report an earnings per share (EPS) of $0.47.

The announcement from Hexcel is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings Track Record

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:

Market Performance of Hexcel's Stock

Shares of Hexcel were trading at $62.25 as of October 17. Over the last 52-week period, shares are down 2.84%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analyst Opinions on Hexcel

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Hexcel.

The consensus rating for Hexcel is Neutral, derived from 6 analyst ratings. An average one-year price target of $67.0 implies a potential 7.63% upside.

Comparing Ratings Among Industry Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Rocket Lab USA and AeroVironment, three key industry players, offering insights into their relative performance expectations and market positioning.

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

Key Findings: Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for Rocket Lab USA and AeroVironment, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Hexcel ranks highest in gross profit among its peers. It is in the middle for consensus rating and revenue growth. Hexcel's return on equity is higher than one peer but lower than another.

All You Need to Know About Hexcel

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.

Hexcel's Economic Impact: An Analysis

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Hexcel displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 10.15%. This indicates a notable 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 net margin is impressive, surpassing industry averages. With a net margin of 9.99%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Hexcel's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 3.12%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.77%, the company showcases effective utilization of assets.

Debt Management: Hexcel's debt-to-equity ratio is below the industry average. With a ratio of 0.51, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

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.