Hexcel Meets on the Top Line, Misses Where it Counts

Hexcel (NYSE: HXL  ) reported earnings on Jan. 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Hexcel met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped.

Gross margins grew, operating margins expanded, net margins dropped.

Revenue details
Hexcel reported revenue of $387.3 million. The 12 analysts polled by S&P Capital IQ hoped for a top line of $392.3 million on the same basis. GAAP reported sales were 9.0% higher than the prior-year quarter's $355.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.36. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.38 per share. GAAP EPS of $0.36 for Q4 were 10% lower than the prior-year quarter's $0.40 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 24.7%, 60 basis points better than the prior-year quarter. Operating margin was 14.0%, 10 basis points better than the prior-year quarter. Net margin was 9.5%, 160 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $409.2 million. On the bottom line, the average EPS estimate is $0.39.

Next year's average estimate for revenue is $1.70 billion. The average EPS estimate is $1.75.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 267 members out of 282 rating the stock outperform, and 15 members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give Hexcel a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hexcel is outperform, with an average price target of $29.38.

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