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:
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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.
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.
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.
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.
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