Aerospace and defense company Hexcel (NYSE: HXL) will be announcing earnings results this Wednesday after the bell. Here’s what investors should know.
Hexcel beat analysts’ revenue expectations last quarter, reporting revenues of $501.5 million, up 9.9% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates.
Is Hexcel a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Hexcel’s revenue to grow 7.6% year on year, a reversal from the 2.1% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Hexcel rarely misses Wall Street’s revenue estimates.
Looking at Hexcel’s peers in the aerospace and defense segment, some have already reported their Q2 results, giving us a hint as to what we can expect. AAR delivered year-on-year revenue growth of 26.1%, beating analysts’ expectations by 3.9%, and RTX reported revenues up 14.5%, topping estimates by 7.8%. AAR traded down 9.8% following the results while RTX was up 9.2%.
Read our full analysis of AAR’s results here and RTX’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the aerospace and defense stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.3% on average over the last month. Hexcel is up 10.9% during the same time and is heading into earnings with an average analyst price target of $98.93 (compared to the current share price of $109.70).
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
