Hexcel (NYSE:HXL) Announces Earnings Results

Key Points

• Hexcel reported an earnings per share (EPS) of $0.50 for the quarter, exceeding analysts' expectations by $0.04, with total revenue of $489.90 million.
• The company lowered its earnings guidance for FY 2025 to a range of $1.850 to $2.050 EPS, amid a 2.1% decline in revenue compared to the same quarter last year.
• Hexcel declared a quarterly dividend of $0.17, resulting in an annual yield of 1.11%, with the ex-dividend date set on August 8th.

Hexcel (NYSE:HXL - Get Free Report) released its earnings results on Thursday. The aerospace company reported $0.50 EPS for the quarter, beating analysts' consensus estimates of $0.46 by $0.04, Zacks reports. Hexcel had a return on equity of 9.77% and a net margin of 4.69%. The company had revenue of $489.90 million during the quarter, compared to the consensus estimate of $482.20 million. During the same quarter last year, the company earned $0.60 earnings per share. Hexcel's quarterly revenue was down 2.1% compared to the same quarter last year. Hexcel updated its FY 2025 guidance to 1.850-2.050 EPS.

Hexcel Trading Down 1.9%

Shares of HXL stock opened at $61.15 on Friday. The firm has a 50-day moving average price of $56.39 and a 200 day moving average price of $57.64. Hexcel has a twelve month low of $45.28 and a twelve month high of $71.05. The company has a market capitalization of $4.92 billion, a price-to-earnings ratio of 56.62, a PEG ratio of 2.11 and a beta of 1.28. The company has a current ratio of 2.59, a quick ratio of 1.39 and a debt-to-equity ratio of 0.51.

Hexcel Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 15th. Investors of record on Friday, August 8th will be paid a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 1.11%. The ex-dividend date of this dividend is Friday, August 8th. Hexcel's payout ratio is 62.96%.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Hexcel by 14.5% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 274,522 shares of the aerospace company's stock valued at $15,033,000 after purchasing an additional 34,822 shares during the last quarter. Royal Bank of Canada grew its holdings in Hexcel by 12.6% in the 1st quarter. Royal Bank of Canada now owns 119,501 shares of the aerospace company's stock valued at $6,544,000 after buying an additional 13,374 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Hexcel by 7.9% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 6,360 shares of the aerospace company's stock valued at $348,000 after buying an additional 468 shares during the period. Caxton Associates LLP purchased a new stake in Hexcel in the 1st quarter valued at about $234,000. Finally, Geneos Wealth Management Inc. grew its holdings in Hexcel by 138.7% in the 1st quarter. Geneos Wealth Management Inc. now owns 759 shares of the aerospace company's stock valued at $42,000 after buying an additional 441 shares during the period. Institutional investors and hedge funds own 95.47% of the company's stock.

Wall Street Analyst Weigh In

HXL has been the subject of several research reports. BMO Capital Markets cut their price target on Hexcel from $72.00 to $52.00 and set a "market perform" rating for the company in a research note on Wednesday, April 23rd. Royal Bank Of Canada cut their price target on Hexcel from $70.00 to $62.00 and set an "outperform" rating for the company in a research note on Wednesday, April 23rd. Barclays cut their price target on Hexcel from $75.00 to $68.00 and set an "equal weight" rating for the company in a research note on Tuesday, April 1st. UBS Group cut their price target on Hexcel from $53.00 to $51.00 and set a "neutral" rating for the company in a research note on Wednesday, April 23rd. Finally, Morgan Stanley lifted their price target on Hexcel from $50.00 to $55.00 and gave the stock an "underweight" rating in a research note on Thursday, July 17th. One analyst has rated the stock with a sell rating, eight have issued a hold rating and two have given a buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $59.22.

About Hexcel

Hexcel Corporation develops, manufactures, and markets carbon fibers, structural reinforcements, honeycomb structures, resins, and composite materials and parts for use in commercial aerospace, space and defense, and industrial applications. It operates through two segments, Composite Materials and Engineered Products.

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