Aerospace and defense company Hexcel (NYSE:HXL) will be reporting earnings this Thursday afternoon. Here’s what investors should know.
Hexcel missed analysts’ revenue expectations by 3.4% last quarter, reporting revenues of $456.5 million, down 3.3% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and 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.
This quarter, analysts are expecting Hexcel’s revenue to decline 5.2% year on year to $474.2 million, a reversal from the 10.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.46 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 6 downward revisions over the last 30 days (we track 16 analysts). Hexcel has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Hexcel’s peers in the aerospace and defense segment, some have already reported their Q2 results, giving us a hint as to what we can expect. AAR delivered year-on-year revenue growth of 14.9%, beating analysts’ expectations by 8.6%, and Byrna reported revenues up 40.6%, in line with consensus estimates. AAR traded up 13.4% following the results while Byrna was down 28.8%.
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 7.9% on average over the last month. Hexcel is up 10.7% during the same time and is heading into earnings with an average analyst price target of $61.36 (compared to the current share price of $60.80).
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