Hexcel (NYSE:HXL) Releases Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Key Points

• Hexcel reported quarterly earnings of $0.37 per share, falling short of the consensus estimate of $0.41 by 4 cents.
• The company’s stock price decreased by 0.5% to $63.80 following the earnings announcement, with recent analyst ratings indicating a mix of buy and hold ratings.
• Hexcel announced a quarterly dividend of $0.17 per share, resulting in an annualized yield of 1.1% and a payout ratio of 62.96%.

Hexcel (NYSE:HXL - Get Free Report) issued its earnings results on Wednesday. The aerospace company reported $0.37 EPS for the quarter, missing analysts' consensus estimates of $0.38 by ($0.01), Zacks reports. Hexcel had a net margin of 4.69% and a return on equity of 9.76%. During the same period in the previous year, the company posted $0.47 earnings per share. Hexcel's revenue was down .2% compared to the same quarter last year. Hexcel updated its FY 2025 guidance to 1.700-1.800 EPS.

Hexcel Stock Down 0.5%

NYSE:HXL traded down $0.31 during trading hours on Wednesday, reaching $63.80. 1,577,347 shares of the stock were exchanged, compared to its average volume of 1,117,607. The company has a debt-to-equity ratio of 0.53, a current ratio of 2.69 and a quick ratio of 1.50. Hexcel has a twelve month low of $45.28 and a twelve month high of $71.05. The stock has a market cap of $5.08 billion, a PE ratio of 59.07, a PEG ratio of 1.99 and a beta of 1.33. The firm has a 50 day moving average of $62.97 and a 200 day moving average of $57.87.

Hexcel Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 15th. Shareholders of record on Friday, August 8th were paid a $0.17 dividend. The ex-dividend date was Friday, August 8th. This represents a $0.68 annualized dividend and a yield of 1.1%. Hexcel's payout ratio is presently 62.96%.

Analysts Set New Price Targets

HXL has been the subject of a number of analyst reports. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $70.00 price target (up previously from $65.00) on shares of Hexcel in a research report on Monday, July 28th. BMO Capital Markets raised their price objective on Hexcel from $52.00 to $67.00 and gave the stock a "market perform" rating in a research report on Tuesday, July 29th. UBS Group upgraded Hexcel from a "neutral" rating to a "buy" rating and upped their target price for the company from $65.00 to $80.00 in a research note on Tuesday, September 2nd. Zacks Research raised Hexcel from a "strong sell" rating to a "hold" rating in a report on Thursday, September 4th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Hexcel in a research note on Wednesday, October 8th. Three analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Hexcel presently has a consensus rating of "Hold" and a consensus price target of $66.63.

Insider Buying and Selling at Hexcel

In related news, insider Gina Fitzsimons sold 911 shares of the business's stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $65.00, for a total value of $59,215.00. Following the completion of the sale, the insider directly owned 4,283 shares in the company, valued at $278,395. The trade was a 17.54% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Thierry Merlot sold 8,897 shares of the business's stock in a transaction dated Thursday, August 28th. The shares were sold at an average price of $63.86, for a total transaction of $568,162.42. Following the completion of the sale, the insider directly owned 51,308 shares of the company's stock, valued at approximately $3,276,528.88. The trade was a 14.78% decrease in their position. The disclosure for this sale can be found here. 1.39% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in HXL. Royal Bank of Canada lifted its position in shares of Hexcel by 12.6% during the 1st quarter. Royal Bank of Canada now owns 119,501 shares of the aerospace company's stock valued at $6,544,000 after acquiring an additional 13,374 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Hexcel by 7.9% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 6,360 shares of the aerospace company's stock valued at $348,000 after purchasing an additional 468 shares in the last quarter. Caxton Associates LLP bought a new stake in Hexcel during the first quarter worth about $234,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Hexcel by 14.5% during 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 worth $15,033,000 after acquiring an additional 34,822 shares in the last quarter. Finally, Geneos Wealth Management Inc. increased its stake in shares of 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 purchasing an additional 441 shares during the last quarter. Institutional investors and hedge funds own 95.47% of the company's stock.

Hexcel Company Profile

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.