Aerospace and defense company Hexcel (NYSE: HXL) will be reporting earnings this Wednesday after market close. Here’s what you need to know.
Hexcel beat analysts’ revenue expectations last quarter, reporting revenues of $491.3 million, up 3.7% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but full-year EPS guidance missing analysts’ expectations significantly.
Is Hexcel a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Hexcel’s revenue to grow 6.3% year on year, a reversal from the 3.3% decrease it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. Hexcel has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Hexcel’s peers in the aerospace and defense segment, some have already reported their Q1 results, giving us a hint as to what we can expect. AAR delivered year-on-year revenue growth of 24.6%, beating analysts’ expectations by 4.1%, and Byrna reported revenues up 10.9%, falling short of estimates by 2.3%. AAR traded up 9.9% following the results while Byrna was down 38.3%.
Read our full analysis of AAR’s results here and Byrna’s results here.
There has been positive sentiment among investors in the aerospace and defense segment, with share prices up 11.6% on average over the last month. Hexcel is up 12.1% during the same time and is heading into earnings with an average analyst price target of $88.20 (compared to the current share price of $88.82).
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