Preview: Hexcel's Earnings

Hexcel HXL is gearing up to announce its quarterly earnings on Monday, 2025-04-21. 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 $0.43.

The market awaits Hexcel's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Past Earnings Performance

The company's EPS missed by $0.00 in the last quarter, leading to a 3.24% increase in the share price on the following day.

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 $52.11 as of April 16. Over the last 52-week period, shares are down 16.67%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Analysts' Perspectives on Hexcel

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

A total of 9 analyst ratings have been received for Hexcel, with the consensus rating being Buy. The average one-year price target stands at $71.44, suggesting a potential 37.09% upside.

Analyzing Ratings Among Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of AeroVironment and Karman Holdings, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for AeroVironment, with an average 1-year price target of $168.0, suggesting a potential 222.39% upside.
• Analysts currently favor an Outperform trajectory for Karman Holdings, with an average 1-year price target of $38.6, suggesting a potential 25.93% downside.

Snapshot: Peer Analysis

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

Key Takeaway:

Hexcel is positioned at the top for Revenue Growth among its peers. In terms of Gross Profit, Hexcel is also leading the group. However, Hexcel's Return on Equity is below the average of its peers.

Delving into Hexcel's Background

Founded in 1948, Hexcel designs and manufactures a range of highly engineered composite fibers, fabrics, resins, and structures for use in the commercial aerospace, defense, and high-performance automotive 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 their respective subcontractors.

Unraveling the Financial Story of Hexcel

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Hexcel's remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 3.56%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in 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 1.22%, 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 0.37%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Hexcel's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.21%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Hexcel's debt-to-equity ratio is below the industry average at 0.46, reflecting a lower dependency on debt financing and a more conservative financial approach.

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.