Free Research Report as Hexcel’s Sales Jumped 5.8% and EPS Soared 50%

Stock Monitor: Rockwell Collins Post Earnings Reporting

LONDON, UK / ACCESSWIRE / January 30, 2018 / Active-Investors.com has just released a free earnings report on Hexcel Corp. (NYSE: HXL). If you want access to this report 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 fourth quarter fiscal 2017 and full fiscal year 2017 operating and financial results on January 24, 2018. The maker of lightweight composite materials topped revenue expectations and raised its earnings guidance for FY18. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Rockwell Collins, Inc. (NYSE: COL), which also belongs to the Industrial Goods sector as the Company Hexcel. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Hexcel most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=HXL

Earnings Highlights and Summary

For Q4 2017, Hexcel’s sales were a record $511.7 million, reflecting an increase of 5.8% compared to $483.5 million in Q4 2016. The Company’s revenue numbers exceeded analysts’ expectations by $6.11 million.

Hexcel’s sales were $1.97 billion for the full year FY17, down 1.5% compared to $2.00 billion in FY16.

Hexcel’s gross margin was 27.8% for Q4 2017 compared to 28.0% in Q4 2016, reflecting a strong underlying performance, while being impacted by startup costs related to the Company’s new manufacturing operations in France. Hexcel’s operating income was $93.2 million, or 18.2% of sales, in the reported quarter compared to $87.0 million, or 18.0% of sales, in the year earlier same quarter.

For Q4 2017, Hexcel reported a GAAP net income of $88.1 million, or $0.96 per diluted share, compared to $59.5 million, or $0.64 per diluted share, in Q4 2016. The Company’s reported quarter results included a $0.24 benefit from new tax law adjustments. Hexcel’s adjusted diluted earnings per share (EPS) advanced 9.4% to $0.70 on a y-o-y basis for Q4 2017, and were in-line with market expectations for EPS of $0.70.

For FY17, Hexcel reported a GAAP net income of $284.0 million, or $3.09 per diluted share, compared to $249.8 million, or $2.65 per diluted share, in FY16. The Company’s adjusted diluted EPS grew 3.9% to $2.68 for FY17.

Segment Results

During Q4 2017, Hexcel’s Commercial Aerospace segment’s sales grew 3.2% to $361.1 million on a y-o-y basis. Sales growth of narrowbody aircraft more than offset reductions in some widebody aircraft sales. For the reported quarter, sales to ‘Other Commercial Aerospace’, (which accounted for approximately 11% of the Commercial Aerospace segment’s sales), including regional and business aircraft customers, advanced 6.5% on a y-o-y basis.

For Q4 2017, Hexcel’s Space & Defense segment’s sales surged 21.9% to $96.4 million, with Rotorcraft sales, comprising approximately half of the segment’s sales, contributed significantly to the improvement.

Hexcel’s Industrial segment’s sales were $54.2 million for Q4 2017, edging down 0.6% on a y-o-y basis. The segment’s Wind energy sales (the largest submarket in the Industrial segment) experienced a challenging transition year in 2017, and were down more than 20% on a y-o-y basis during the reported quarter.

Cash Matters

Hexcel’s free cash flow generated was $150.6 million in 2017, more than doubling the free cash flow of $73.5 million generated in 2016. The Company’s working capital was a source of $20.3 million in 2017 compared to $18.6 million in 2016. The primary driver of the working capital improvement was lower receivables through strong cash collections. Hexcel’s capital expenditure was $284.4 million in 2017 compared to $320.2 million in 2016.

In 2017, Hexcel used $150.3 million to repurchase shares of its common stock, and has $242.5 million remaining under the authorized share repurchase program. The Company’s Board of Directors declared a quarterly dividend of $0.125 per share, payable to stockholders of record as on February 06, 2018, with a payment date of February 13, 2018.

Outlook for FY18

For the full year FY18, Hexcel is forecasting sales to be in the range of $2.10 billion to $2.20 billion. The Company is estimating adjusted diluted EPS of $2.96 to $3.10 – based on an effective tax rate (ETR) of 25%. Hexcel had earlier forecasted EPS of $2.80 – $2.94 based on an ETR of 29%. The Company is projecting to generate free cash flow greater than $230 million and accrual basis capital expenditure of $170 million to $190 million for FY18.

Stock Performance Snapshot

January 29, 2018 – At Monday’s closing bell, Hexcel’s stock slightly climbed 0.78%, ending the trading session at $68.15.

Volume traded for the day: 979.02 thousand shares, which was above the 3-month average volume of 559.52 thousand shares.

Stock performance in the last month – up 9.58%; previous three-month period – up 9.85%; past twelve-month period – up 35.03%; and year-to-date – up 10.19%

After yesterday’s close, Hexcel’s market cap was at $6.14 billion.

Price to Earnings (P/E) ratio was at 22.06.

The stock has a dividend yield of 0.73%.

The stock is part of the Industrial Goods sector, categorized under the Aerospace/Defense Products & Services industry.

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