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Hexcel Corporation (HXL - Free Report) reported second-quarter 2021 adjusted earnings of 8 cents per share, which exceeded the Zacks Consensus Estimate of a penny.
In the quarter under review, the company posted GAAP earnings of 3 cents against the prior-year quarter’s GAAP loss of a penny.
Total Sales
Net sales totaled $320.3 million, narrowly missing the Zacks Consensus Estimate of $321 million by 0.2%. However, the top line witnessed a decline of 15.4% from the year-ago quarter’s $378.7 million.
Operational Update
Hexcel's gross margin for the second quarter was 19.3% compared to 14.5% in the prior-year period, reflecting a step up in carbon fiber production and sales resulting in a strong margin mix.
Selling, general and administrative, and R&T expenses for the second quarter of 2021 rose 20% year over year.
The company’s adjusted operating income amounted to $19.3 million in the quarter compared with $19.5 million in the year-ago period.
Hexcel Corporation Price, Consensus and EPS Surprise
Commercial Aerospace: Net sales were down 24.6% year over year to $153.7 million. Lower sales across all major programs, resulted in this unit’s poor top-line performance.
Space and Defense: Net sales dropped 1.4% year over year to $106.9 million on account of temporary pandemic-induced disruptions within select space and defense platforms.
Industrial: Net sales declined 10.1% year over year to $59.7 million, primarily due to lower wind energy sales.
Financial Details
As of Jun 30, 2021, cash and cash equivalents were $115.3 million compared with $103.3 million as of Dec 31, 2020.
Long-term debt totaled $904.5 million as of Jun 30, 2021, down from $925.5 million as of 2020-end.
At the end of second-quarter 2021, cash generated from operating activities was $38.9 million compared with $73.6 million in the prior year.
Hexcel’s adjusted free cash outflow at the end of second-quarter 2021 was $29.7 million compared with $33.2 million at the end of the prior-year period.
2021 Guidance
The company continues to withhold its financial guidance due to the market uncertainties arising from the global pandemic.
Lockheed Martin Corp. (LMT - Free Report) reported second-quarter 2021 adjusted earnings of $7.13 per share, which surpassed the Zacks Consensus Estimate of $6.51 by 9.5%.
Upcoming Q2 Defense Releases
Boeing (BA - Free Report) will release its results on Jul 28.
General Dynamics (GD - Free Report) will release its results on Jul 28.
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Hexcel (HXL) Q2 Earnings Beat Estimates, Sales Decline Y/Y
Hexcel Corporation (HXL - Free Report) reported second-quarter 2021 adjusted earnings of 8 cents per share, which exceeded the Zacks Consensus Estimate of a penny.
In the quarter under review, the company posted GAAP earnings of 3 cents against the prior-year quarter’s GAAP loss of a penny.
Total Sales
Net sales totaled $320.3 million, narrowly missing the Zacks Consensus Estimate of $321 million by 0.2%. However, the top line witnessed a decline of 15.4% from the year-ago quarter’s $378.7 million.
Operational Update
Hexcel's gross margin for the second quarter was 19.3% compared to 14.5% in the prior-year period, reflecting a step up in carbon fiber production and sales resulting in a strong margin mix.
Selling, general and administrative, and R&T expenses for the second quarter of 2021 rose 20% year over year.
The company’s adjusted operating income amounted to $19.3 million in the quarter compared with $19.5 million in the year-ago period.
Hexcel Corporation Price, Consensus and EPS Surprise
Hexcel Corporation price-consensus-eps-surprise-chart | Hexcel Corporation Quote
Quarterly Performance
Commercial Aerospace: Net sales were down 24.6% year over year to $153.7 million. Lower sales across all major programs, resulted in this unit’s poor top-line performance.
Space and Defense: Net sales dropped 1.4% year over year to $106.9 million on account of temporary pandemic-induced disruptions within select space and defense platforms.
Industrial: Net sales declined 10.1% year over year to $59.7 million, primarily due to lower wind energy sales.
Financial Details
As of Jun 30, 2021, cash and cash equivalents were $115.3 million compared with $103.3 million as of Dec 31, 2020.
Long-term debt totaled $904.5 million as of Jun 30, 2021, down from $925.5 million as of 2020-end.
At the end of second-quarter 2021, cash generated from operating activities was $38.9 million compared with $73.6 million in the prior year.
Hexcel’s adjusted free cash outflow at the end of second-quarter 2021 was $29.7 million compared with $33.2 million at the end of the prior-year period.
2021 Guidance
The company continues to withhold its financial guidance due to the market uncertainties arising from the global pandemic.
Zacks Rank
Hexcel currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A Recent Defense Release
Lockheed Martin Corp. (LMT - Free Report) reported second-quarter 2021 adjusted earnings of $7.13 per share, which surpassed the Zacks Consensus Estimate of $6.51 by 9.5%.
Upcoming Q2 Defense Releases
Boeing (BA - Free Report) will release its results on Jul 28.
General Dynamics (GD - Free Report) will release its results on Jul 28.