Aerospace and defense company Hexcel (NYSE:HXL) will be reporting earnings this Wednesday afternoon. Here’s what you need to know.
Hexcel met analysts’ revenue expectations last quarter, reporting revenues of $529.3 million, up 8% year on year. It was a strong quarter for the company, with full-year EPS guidance exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Is Hexcel a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Hexcel’s revenue to grow 10.2% year on year, improving from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Hexcel rarely misses Wall Street’s revenue estimates.
Looking at Hexcel’s peers in the aerospace and defense segment, some have already reported their Q3 results, giving us a hint as to what we can expect. AAR delivered year-on-year revenue growth of 24.1%, beating analysts’ expectations by 4.3%, and Byrna reported a revenue decline of 45.7%, falling short of estimates by 5.3%. AAR traded down 7.2% following the results while Byrna was up 11.6%.
Read our full analysis of AAR’s results here and Byrna’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the aerospace and defense stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.9% on average over the last month. Hexcel is up 5.4% during the same time and is heading into earnings with an average analyst price target of $104.47 (compared to the current share price of $91.62).
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