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Hexcel (HXL) Q4 Earnings Miss Estimates, Sales Rise Y/Y
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Hexcel Corporation (HXL - Free Report) reported fourth-quarter 2023 adjusted earnings of 43 cents per share, which missed the Zacks Consensus Estimate of 49 cents by 12.2%. However, the bottom line improved 7.5% from the year-ago quarter’s 40 cents.
In the quarter under review, Hexcel posted a GAAP loss of 21 cents per share against the prior-year quarter’s earnings of 43 cents.
Hexcel reported adjusted earnings of $1.81 per share for 2023, which missed the Zacks Consensus Estimate of $1.88 by 3.7%. However, the bottom line increased 41.4% from $1.28 per share recorded in 2022.
Total Sales
In the fourth quarter, the company’s net sales totaled $457.5 million, which missed the Zacks Consensus Estimate of $467 million by 2%. However, the top line witnessed an improvement of 6.5% from the year-ago quarter’s $429 million.
Net sales were $1.79 billion for 2023, which missed the Zacks Consensus Estimate of $1.80 billion by 0.6%. However, the top line rose 13.4% from $1.58 billion reported in the year-ago quarter.
Hexcel Corporation Price, Consensus and EPS Surprise
Hexcel's gross margin in the fourth quarter was 22.5%, which declined from 23.1% in the prior-year period. This was driven by higher infrastructure levels ahead of anticipated increases in customer production rates in 2024 and beyond.
SG&A expenses increased 2.7% to $41.9 million. Meanwhile, research and technology expenses for the fourth quarter of 2023 rose 0.8% year over year to $12.1 million.
HXL’s adjusted operating income was $49.1 million in the quarter compared with $46.3 million in the year-ago period.
Segmental Performance
Commercial Aerospace: Net sales increased 4.4% year over year to $267.5 million. The rise was driven by increasing widebody sales for the Airbus A350 and Boeing 787.
Space and Defense: Net sales rose 20.4% year over year to $152.3 million. The increase can be attributed to strong sales growth in space markets and classified programs.
Industrial: Net sales decreased 19.3% year over year to $37.7 million. The decline was due to the deterioration witnessed in a few industrial markets.
Financial Details
As of Dec 31, 2023, cash and cash equivalents were $227 million compared with $112 million as of Dec 31, 2022.
The long-term debt totaled $699.4 million as of Dec 31, 2023, down from $723.3 million as of 2022-end.
In full-year 2023, the company’s cash flow from operating activities was $257.1 million compared with $173.1 million a year ago.
Hexcel’s adjusted free cash flow for the full year ending Dec 31, 2023, was $148.9 million compared with $96.8 million in the prior-year period.
2024 Guidance
Hexcel expects to generate sales in the band of $1.925-$2.025 billion in 2024. The Zacks Consensus Estimate, pegged at $1.99 billion, is slightly higher than the midpoint of the company's guidance.
HXL expects adjusted earnings per share in the range of $2.10-$2.30 in 2024. The Zacks Consensus Estimate, pegged at $2.44 per share, is higher than the company’s guidance.
Hexcel expects to generate free cash flow of more than $200 million in 2024.
Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2023 adjusted earnings of $7.90 per share, which beat the Zacks Consensus Estimate of $7.26 by 8.8%. The bottom line also improved 1.4% from the year-ago quarter's recorded figure.
Net sales were $18.87 billion in the reported quarter, which surpassed the Zacks Consensus Estimate of $17.98 billion by 4.9%. The top line, however, decreased 0.6% from $18.99 billion reported in the year-ago quarter.
General Dynamics Corporation (GD - Free Report) reported fourth-quarter 2023 earnings per share of $3.64, which missed the Zacks Consensus Estimate of $3.66 by 0.6%. However, the figure increased 1.7% from $3.58 per share recorded in the year-ago quarter.
In the quarter under review, revenues of $11,668 million beat the Zacks Consensus Estimate of $11,543 million by 1.1%. The top line also improved 7.5% from the prior-year reported figure.
Textron Inc. (TXT - Free Report) reported fourth-quarter 2023 adjusted earnings of $1.60 per share, which surpassed the Zacks Consensus Estimate of $1.53 by 4.6%. The bottom line also improved 30.1% from the year-ago quarter’s recorded figure.
TXT reported total revenues of $3,892 million, which missed the Zacks Consensus Estimate of $3,917.6 million by 0.7%. However, the reported figure increased 7% from the year-ago quarter’s level of $3,636 million.
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Hexcel (HXL) Q4 Earnings Miss Estimates, Sales Rise Y/Y
Hexcel Corporation (HXL - Free Report) reported fourth-quarter 2023 adjusted earnings of 43 cents per share, which missed the Zacks Consensus Estimate of 49 cents by 12.2%. However, the bottom line improved 7.5% from the year-ago quarter’s 40 cents.
In the quarter under review, Hexcel posted a GAAP loss of 21 cents per share against the prior-year quarter’s earnings of 43 cents.
Hexcel reported adjusted earnings of $1.81 per share for 2023, which missed the Zacks Consensus Estimate of $1.88 by 3.7%. However, the bottom line increased 41.4% from $1.28 per share recorded in 2022.
Total Sales
In the fourth quarter, the company’s net sales totaled $457.5 million, which missed the Zacks Consensus Estimate of $467 million by 2%. However, the top line witnessed an improvement of 6.5% from the year-ago quarter’s $429 million.
Net sales were $1.79 billion for 2023, which missed the Zacks Consensus Estimate of $1.80 billion by 0.6%. However, the top line rose 13.4% from $1.58 billion reported in the year-ago quarter.
Hexcel Corporation Price, Consensus and EPS Surprise
Hexcel Corporation price-consensus-eps-surprise-chart | Hexcel Corporation Quote
Operational Update
Hexcel's gross margin in the fourth quarter was 22.5%, which declined from 23.1% in the prior-year period. This was driven by higher infrastructure levels ahead of anticipated increases in customer production rates in 2024 and beyond.
SG&A expenses increased 2.7% to $41.9 million. Meanwhile, research and technology expenses for the fourth quarter of 2023 rose 0.8% year over year to $12.1 million.
HXL’s adjusted operating income was $49.1 million in the quarter compared with $46.3 million in the year-ago period.
Segmental Performance
Commercial Aerospace: Net sales increased 4.4% year over year to $267.5 million. The rise was driven by increasing widebody sales for the Airbus A350 and Boeing 787.
Space and Defense: Net sales rose 20.4% year over year to $152.3 million. The increase can be attributed to strong sales growth in space markets and classified programs.
Industrial: Net sales decreased 19.3% year over year to $37.7 million. The decline was due to the deterioration witnessed in a few industrial markets.
Financial Details
As of Dec 31, 2023, cash and cash equivalents were $227 million compared with $112 million as of Dec 31, 2022.
The long-term debt totaled $699.4 million as of Dec 31, 2023, down from $723.3 million as of 2022-end.
In full-year 2023, the company’s cash flow from operating activities was $257.1 million compared with $173.1 million a year ago.
Hexcel’s adjusted free cash flow for the full year ending Dec 31, 2023, was $148.9 million compared with $96.8 million in the prior-year period.
2024 Guidance
Hexcel expects to generate sales in the band of $1.925-$2.025 billion in 2024. The Zacks Consensus Estimate, pegged at $1.99 billion, is slightly higher than the midpoint of the company's guidance.
HXL expects adjusted earnings per share in the range of $2.10-$2.30 in 2024. The Zacks Consensus Estimate, pegged at $2.44 per share, is higher than the company’s guidance.
Hexcel expects to generate free cash flow of more than $200 million in 2024.
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 Corporation (LMT - Free Report) reported fourth-quarter 2023 adjusted earnings of $7.90 per share, which beat the Zacks Consensus Estimate of $7.26 by 8.8%. The bottom line also improved 1.4% from the year-ago quarter's recorded figure.
Net sales were $18.87 billion in the reported quarter, which surpassed the Zacks Consensus Estimate of $17.98 billion by 4.9%. The top line, however, decreased 0.6% from $18.99 billion reported in the year-ago quarter.
General Dynamics Corporation (GD - Free Report) reported fourth-quarter 2023 earnings per share of $3.64, which missed the Zacks Consensus Estimate of $3.66 by 0.6%. However, the figure increased 1.7% from $3.58 per share recorded in the year-ago quarter.
In the quarter under review, revenues of $11,668 million beat the Zacks Consensus Estimate of $11,543 million by 1.1%. The top line also improved 7.5% from the prior-year reported figure.
Textron Inc. (TXT - Free Report) reported fourth-quarter 2023 adjusted earnings of $1.60 per share, which surpassed the Zacks Consensus Estimate of $1.53 by 4.6%. The bottom line also improved 30.1% from the year-ago quarter’s recorded figure.
TXT reported total revenues of $3,892 million, which missed the Zacks Consensus Estimate of $3,917.6 million by 0.7%. However, the reported figure increased 7% from the year-ago quarter’s level of $3,636 million.