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Hexcel Corporation (HXL - Free Report) reported second-quarter 2022 adjusted earnings of 33 cents per share, which exceeded the Zacks Consensus Estimate of 30 cents by 10%.
The bottom line improved massively from the year-ago earnings of 8 cents per share, thus reflecting growth of a solid 312.5%.
In the quarter under review, the company posted GAAP earnings of 53 cents compared with the prior-year quarter’s earnings of 3 cents per share, reflecting an improvement of a whopping 1,666.7%.
Total Sales
In the second quarter, net sales totaled $393 million, which beat the Zacks Consensus Estimate of $383 million by 2.6%. Moreover, the top line witnessed an improvement of 22.7% from the year-ago quarter’s $320.3 million.
Hexcel Corporation Price, Consensus and EPS Surprise
Hexcel's gross margin for the second quarter was 22.8% compared with 19.3% in the prior-year period, driven by higher sales.
SG&A expenses rose 7.7%, whereas research and technology expenses for the second quarter of 2022 decreased 1.5% year over year.
HXL’s adjusted operating income amounted to $44.7 million in the quarter compared with the $19.3 million incurred in the year-ago period.
Segmental Performance
Commercial Aerospace: Net sales increased 48.1% year over year to $227.6 million, driven by growth in the A350, A320neo and 737 MAX programs.
Space and Defense: Net sales increased 4.7% year over year to $111.9 million. The increase can be attributed to growth in the Space, CH-53K and military jet programs.
Industrial: Net sales decreased 10.4% year over year to $53.5 million, primarily due to lower wind energy sales and the negative impact of foreign exchange.
Financial Details
As of Jun 30, 2022, cash and cash equivalents were $99.2 million compared with $127.7 million as of Dec 31, 2021.
Long-term debt totaled $812 million as of Jun 30, 2022, slightly down from $822.4 million as of 2021-end.
In the second quarter of 2022, cash flow from operating activities was $18.3 million compared with $38.9 million in the prior-year period.
Hexcel’s adjusted free cash outflow for the six months ended Jun 30, 2022 was $19.6 million compared to the free cash inflow of $29.7 million in the prior-year period.
2022 Guidance
The company reaffirmed its 2022 financial guidance.
Hexcel currently expects to generate sales in the range of $1.50-$1.63 billion in 2022. The Zacks Consensus Estimate for sales, pegged at $1.56 billion, is in line with the midpoint of the guidance range.
The company projects to generate adjusted earnings per share in the range of $1.00-$1.24 in 2022. The Zacks Consensus Estimate for sales, pegged at $1.20, is higher than the midpoint of the guidance range.
Lockheed Martin (LMT - Free Report) reported second-quarter 2022 earnings of $6.32 per share, which surpassed the Zacks Consensus Estimate of $6.29 by 0.5%. However, the bottom line declined 1.6% year over year.
Lockheed Martin’s top line declined 9.3% from the $17.03 billion reported in the year-ago quarter. LMT ended the second quarter of 2022 (on Jun 26, 2022) with $134.64 billion in the backlog compared with $135.23 billion at the end of the first quarter of 2022.
AAR Corp. (AIR - Free Report) reported fourth-quarter fiscal 2022 adjusted earnings of 72 cents per share, which surpassed the Zacks Consensus Estimate of 68 cents by 5.9%. Earnings recorded a solid surge of 53.2% from the year-ago quarter.
AAR generated net sales worth $476.1 million, which improved 8.8% from the $437.6 million recorded in the year-ago quarter. AIR’s cash and cash equivalents amounted to $53.5 million as of May 31, 2022 compared with $51.8 million as of May 31, 2021.
Upcoming Defense Release
Curtiss-Wright(CW - Free Report) is slated to release second-quarter 2022 results on Aug 3. It boasts a long-term earnings growth rate of 24.7%. The Zacks Consensus Estimate for Curtiss-Wright’s second-quarter earnings is pegged at $1.68 per share, indicating growth of 7.7% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for CW’s second-quarter sales is pegged at $604.9, suggesting a decline of 2.7% from the prior-year quarter’s reported figure.
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Hexcel (HXL) Q2 Earnings Beat Estimates, Sales Rise Y/Y
Hexcel Corporation (HXL - Free Report) reported second-quarter 2022 adjusted earnings of 33 cents per share, which exceeded the Zacks Consensus Estimate of 30 cents by 10%.
The bottom line improved massively from the year-ago earnings of 8 cents per share, thus reflecting growth of a solid 312.5%.
In the quarter under review, the company posted GAAP earnings of 53 cents compared with the prior-year quarter’s earnings of 3 cents per share, reflecting an improvement of a whopping 1,666.7%.
Total Sales
In the second quarter, net sales totaled $393 million, which beat the Zacks Consensus Estimate of $383 million by 2.6%. Moreover, the top line witnessed an improvement of 22.7% from the year-ago quarter’s $320.3 million.
Hexcel Corporation Price, Consensus and EPS Surprise
Hexcel Corporation price-consensus-eps-surprise-chart | Hexcel Corporation Quote
Operational Update
Hexcel's gross margin for the second quarter was 22.8% compared with 19.3% in the prior-year period, driven by higher sales.
SG&A expenses rose 7.7%, whereas research and technology expenses for the second quarter of 2022 decreased 1.5% year over year.
HXL’s adjusted operating income amounted to $44.7 million in the quarter compared with the $19.3 million incurred in the year-ago period.
Segmental Performance
Commercial Aerospace: Net sales increased 48.1% year over year to $227.6 million, driven by growth in the A350, A320neo and 737 MAX programs.
Space and Defense: Net sales increased 4.7% year over year to $111.9 million. The increase can be attributed to growth in the Space, CH-53K and military jet programs.
Industrial: Net sales decreased 10.4% year over year to $53.5 million, primarily due to lower wind energy sales and the negative impact of foreign exchange.
Financial Details
As of Jun 30, 2022, cash and cash equivalents were $99.2 million compared with $127.7 million as of Dec 31, 2021.
Long-term debt totaled $812 million as of Jun 30, 2022, slightly down from $822.4 million as of 2021-end.
In the second quarter of 2022, cash flow from operating activities was $18.3 million compared with $38.9 million in the prior-year period.
Hexcel’s adjusted free cash outflow for the six months ended Jun 30, 2022 was $19.6 million compared to the free cash inflow of $29.7 million in the prior-year period.
2022 Guidance
The company reaffirmed its 2022 financial guidance.
Hexcel currently expects to generate sales in the range of $1.50-$1.63 billion in 2022. The Zacks Consensus Estimate for sales, pegged at $1.56 billion, is in line with the midpoint of the guidance range.
The company projects to generate adjusted earnings per share in the range of $1.00-$1.24 in 2022. The Zacks Consensus Estimate for sales, pegged at $1.20, is higher than the midpoint of the guidance range.
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
Recent Defense Releases
Lockheed Martin (LMT - Free Report) reported second-quarter 2022 earnings of $6.32 per share, which surpassed the Zacks Consensus Estimate of $6.29 by 0.5%. However, the bottom line declined 1.6% year over year.
Lockheed Martin’s top line declined 9.3% from the $17.03 billion reported in the year-ago quarter. LMT ended the second quarter of 2022 (on Jun 26, 2022) with $134.64 billion in the backlog compared with $135.23 billion at the end of the first quarter of 2022.
AAR Corp. (AIR - Free Report) reported fourth-quarter fiscal 2022 adjusted earnings of 72 cents per share, which surpassed the Zacks Consensus Estimate of 68 cents by 5.9%. Earnings recorded a solid surge of 53.2% from the year-ago quarter.
AAR generated net sales worth $476.1 million, which improved 8.8% from the $437.6 million recorded in the year-ago quarter. AIR’s cash and cash equivalents amounted to $53.5 million as of May 31, 2022 compared with $51.8 million as of May 31, 2021.
Upcoming Defense Release
Curtiss-Wright(CW - Free Report) is slated to release second-quarter 2022 results on Aug 3. It boasts a long-term earnings growth rate of 24.7%. The Zacks Consensus Estimate for Curtiss-Wright’s second-quarter earnings is pegged at $1.68 per share, indicating growth of 7.7% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for CW’s second-quarter sales is pegged at $604.9, suggesting a decline of 2.7% from the prior-year quarter’s reported figure.