Hexcel Corporation HXL reported fourth-quarter 2019 adjusted earnings of 86 cents per share, surpassing the Zacks Consensus Estimate of 85 cents by 1.2%. Further, the bottom line improved 4.9% from the prior-year quarter’s 82 cents. In the reported quarter, the company’s GAAP earnings came in at 86 cents compared with the prior-year quarter’s 76 cents. For 2019, Hexcel's earnings were $3.54 per share, up 16.1% from $3.05 in the year-ago period. The full-year earnings figure surpassed the Zacks Consensus Estimate of $3.53 by 0.3%. Total Revenues Net sales totaled $564.3 million, which missed the Zacks Consensus Estimate of $591.1 million by 4.5%. However, the top line witnessed an increase of 0.6% from the year-ago quarter’s $561 million. In 2019, total revenues grew 7.6% year over year to $2,355.7 million. However, the full-year revenues figure missed the Zacks Consensus Estimate of $2,380 million by 1%. Operational Update Hexcel's gross margin was 26% in the fourth quarter, reflecting a year-over-year contraction of 80 basis points. The company’s operating expenses amounted to $49.1 million in the quarter compared with the previous year’s $54.6 million. Selling, general and administrative expenses were up 13.3%, while research and technology expenses were down 13.2%. Quarterly Performance Commercial Aerospace: Net sales were down 1.5% year over year to $379.8 million. The decline can be attributed to lower sales for legacy narrow-body programs. Space and Defense: Net sales rose 18% year over year to $115.3 million, primarily owing to growth across several defense and space programs, and the F-35 Joint Strike Fighter (JSF) program alongside the contribution from ARC Technologies. Industrial: Net sales declined 11.2% year over year to $69.2 million, primarily due to soft wind energy sales. Hexcel Corporation Price, Consensus and EPS Surprise Financial Details
As of Dec 31, 2019, cash and cash equivalents were $64.4 million compared with $32.7 million as of Dec 31, 2018.
Long-term debt totaled $1,050.6 million as of Dec 31, up from $947.4 million as of 2018-end. At the end of 2019, cash generated from operating activities summed $491.1 million compared with $421.4 million in the prior year. Other Financial Updates The effective tax rate for the fourth quarter of 2019 was 16.6% compared with 24.2% in the year-ago period. The fourth quarter of 2019 was favorably impacted by a rate adjustment The company used $76 million to repurchase shares of its common stock during the fourth quarter of 2019, bringing the total share repurchase value to $143 million in 2019. The remaining authorization under the share repurchase program as of Dec 31 was $242 million. 2020 Guidance Hexcel forecasts its free cash flow to exceed $300 million and accrual basis capital expenditures to remain between $100 million and $120 million in 2020. The underlying effective tax rate is estimated at 23%. 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 Teledyne Technologies Inc. TDY reported fourth-quarter 2019 adjusted earnings of $2.90 per share, which surpassed the Zacks Consensus Estimate of $2.76 by 5.1%. The bottom-line figure came above the guided range of $2.71-$2.76 for the reported quarter. Lockheed Martin Corp. ( LMT Quick Quote LMT - Free Report) reported fourth-quarter 2019 earnings of $5.29 per share, which surpassed the Zacks Consensus Estimate of $4.99 by 6%. The bottom line also improved 20.5% from $4.39 in the year-ago quarter. General Dynamics Corporation’s GD fourth-quarter earnings from continuing operations of $3.51 per share beat the Zacks Consensus Estimate of $3.46 by 1.45%. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.” Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.7% per year. So be sure to give these hand-picked 7 your immediate attention. See 7 handpicked stocks now >>