U.S. Markets closed

Free Research Report as Hexcel Generated Record Quarterly Revenues; Adjusted EPS Jumped 13.3%

Stock Monitor: Embraer Post Earnings Reporting

LONDON, UK / ACCESSWIRE / May 07, 2018 / If you want access to our free earnings report on Hexcel Corp. (NYSE: HXL), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=HXL. The Company reported its first quarter fiscal 2018 operating and financial results on April 23, 2018. The maker of lightweight composite materials outperformed top- and bottom-line expectations, and also provided guidance for FY18. Register today and get access to over 1000 Free Research Reports by joining our site below:

www.active-investors.com/registration-sg

Active-Investors.com is currently working on the research report for Embraer S.A. (NYSE: ERJ), which also belongs to the Industrial Goods sector as the Company Hexcel. Do not miss out and become a member today for free to access this upcoming report at:

www.active-investors.com/registration-sg/?symbol=ERJ

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Hexcel most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=HXL

Earnings Highlights and Summary

For the first quarter of the fiscal year 2018, Hexcel's sales were a record $540.1 million, reflecting an increase of 12.8%, or 10.2% in constant currency, versus $478.8 million in Q1 2017. The Company's reported quarter results reflected the recent implementation of ASC 606 Revenue from Contracts with Customers, for which the impact in Q1 2018 was a reduction in sales of $2.9 million. Hexcel's revenue numbers for the reported quarter beat analysts' estimates by $25.78 million.

Hexcel's gross margin was 26.4% in Q1 2018 compared to 28.0% in Q1 2017. The Company's margin for the reported quarter included an increase in depreciation of around $5 million on a y-o-y basis, reflecting the timing of recent capital expenditure to support growth. In addition, the Company's reported quarter results also saw headwinds related to startup costs for Hexcel's new manufacturing operations in Roussillon, France.

On a constant currency basis, Hexcel's selling, general, and administrative expenses were up 2.6% and research and technology expenses were up 3.7% Q1 2018. The Company's adjusted operating income was $82.4 million, or 15.3% of sales, in the reported quarter compared to $78.6 million, or 16.4% of sales, in the prior year's same quarter.

For Q1 2018, Hexcel recorded GAAP earnings of $61.6 million, or $0.68 per diluted share, compared to $64.6 million, or $0.70 per diluted share, in Q1 2017. The Company's reported quarter results included a $0.10 non-recurring discrete tax benefit.

Hexcel's adjusted earnings were $0.68 per diluted share in Q1 2018 compared to $0.60 per diluted share in Q1 2017, reflecting a 13.3% y-o-y increase. The Company's earnings beat Wall Street's estimates of $0.67 per share.

Segment Results

During Q1 2018, Hexcel's Commercial Aerospace segment's sales were $382.7 million; increasing 10.2%, or 9.4% in constant currency. The reported quarter saw a positive growth for most of the segment programs with a particularly strong performance for the A320neo, 737MAX, and the A350. Hexcel's sales to ‘Other Commercial Aerospace', which includes regional and business aircraft, were up by over 30% on a y-o-y basis, driven by business and regional jets.

For Q1 2018, Hexcel's Space & Defense segment's sales were $90.1 million; rising 17.5%, or 13.6% in constant currency, driven by a growth in the F-35 Joint Strike Fighter along with a continued strength in military rotorcraft. The segment's sales for Q1 2018 related to civil helicopters were the strongest in more than two years, and were also more than double of Q1 2017.

For Q1 2018, Hexcel's Industrial segment's total sales were $67.3 million; surging 22.6%, or 10.3% in constant currency. Wind energy sales, which is the largest sub-market in the Industrial segment, improved 10.6% in constant currency on a y-o-y basis, as the transition to new generation wind blades at the Company's largest wind energy customer had begun.

Cash Matters

Hexcel's free cash flow generated was $3.1 million in Q1 2018 compared to $31.3 million in Q1 2017. The Company's working capital was $46.2 million in the reported quarter compared to $39.7 million in the prior year's corresponding quarter.

During Q1 2018, Hexcel used $30.1 million to repurchase shares of its common stock, and had $212.4 million remaining under the authorized share repurchase program.

Outlook

For the full fiscal year 2018, Hexcel is forecasting sales of $2.10 billion to $2.20 billion, and adjusted earnings per diluted share to be in the band of $2.96 to $3.10. For FY18, Hexcel is estimating free cash flow to be greater than $230 million.

Stock Performance Snapshot

May 04, 2018 - At Friday's closing bell, Hexcel's stock climbed 1.73%, ending the trading session at $66.96.

Volume traded for the day: 322.13 thousand shares.

Stock performance in the last month – up 1.64%; previous six-month period – up 8.67%; past twelve-month period – up 32.15%; and year-to-date – up 8.26%

After last Friday's close, Hexcel's market cap was at $6.03 billion.

Price to Earnings (P/E) ratio was at 23.62.

The stock has a dividend yield of 0.75%.

The stock is part of the Industrial Goods sector, categorized under the Aerospace/Defense Products & Services industry. This sector was up 1.0% at the end of the session.

Active-Investors:

Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst. For further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com

Phone number: 73 29 92 6381

Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active-Investors