The chart below shows how HXL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HXL sees a +0.32% change in stock price 10 days leading up to the earnings, and a +0.82% change 10 days following the report. On the earnings day itself, the stock moves by -0.46%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Strong Revenue Growth: Sales of $1,930,000,000 in 2024 represented a 6.4% increase over 2023, indicating strong revenue growth despite industry challenges.
Q4 Adjusted EPS Growth: Adjusted EPS for Q4 2024 was $0.52, a nearly 21% increase compared to Q4 2023, reflecting improved profitability.
Aerospace Sales Growth: Commercial Aerospace sales in Q4 2024 increased 4.6% year over year on a constant currency basis, with full year sales up 11.9%, demonstrating robust demand in this segment.
Free Cash Flow Achievement: Free cash flow for 2024 was $203,000,000, showcasing effective cash management and operational efficiency.
Quarterly Dividend Increase: The Board declared a quarterly dividend of $0.17, a 13% increase from the previous level, highlighting a commitment to returning value to shareholders.
Negative
Industrial Sales Decline: Industrial sales decreased 14.8% in Q4 2024 compared to Q4 2023, with a full year decline of 21.1%, indicating significant weakness across all submarkets except recreation.
V-22 Program Sales Decline: The V-22 program, which was a top 5 program in 2023, has seen sales decline and did not even reach the top 10 in 2024, reflecting a downturn in key defense contracts.
Impairment and Restructuring Charges: Noncash impairment and restructuring charges related to the divestment of the Neumark Austria facility negatively impacted Q4 results, contributing to overall financial strain.
Muted Sales Growth Forecast: The company anticipates a muted sales growth forecast for 2025, with potential delays in production recovery impacting revenue, particularly in the commercial aerospace sector.
Rising R&D Expenses Impact Margins: R&D expenses are expected to rise in 2025, which, combined with inflationary pressures, will dampen margins until sales recovery occurs, indicating ongoing cost challenges.
Earnings call transcript: Hexcel Q4 2024 beats EPS forecast, stock rises
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