NYSE$HXL

Hexcel Corp · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Hexcel reported strong operating leverage in Q3 2022, driven by robust demand across all markets and effective management of operational headwinds.

Hexcel Corporation reported Q3 2022 results with net sales of $365 million and adjusted diluted EPS of $0.33. The company narrowed its 2022 financial guidance ranges and raised its EPS midpoint based on strong year-to-date execution.

  • Q3 2022 GAAP diluted EPS was $0.31, and adjusted diluted EPS was $0.33, compared to Q3 2021 GAAP diluted EPS of $0.11 and adjusted diluted EPS of $0.13.
  • Q3 2022 Sales were $365 million, compared to $334 million in Q3 2021.
  • FY 2022 adjusted diluted EPS guidance revised to $1.12 to $1.24 from the previous $1.00 to $1.24.
  • FY 2022 sales guidance revised to $1.53 billion to $1.60 billion previously $1.50 billion to $1.63 billion.

Headline financials

Total Revenue

$365M

Previous: $334M+9.3%
EPS (adj)

$0.33

Previous: $0.13+153.8%
Adj. Op. Inc. % of Sales

11.3%

No prior period
Capital Expenditures

-$58.3M

Previous: -$15M-288.7%
Free Cash Flow

$31M

Previous: -$17.8M+274.2%
Net Income

$89.3M

Previous: -$2.8M+3289.3%
Operating Income

$40.8M

Previous: $22.8M+78.9%
Gross Profit

$81.8M

Previous: $66M+23.9%
Cash & Equivalents

$90.9M

Previous: $106M-14.1%
Total Assets

$2.78B

Previous: $2.87B-3.4%

Revenue & EPS history

Hexcel · Revenue · Quarterly

$365M

Q3 2022+9.3%vs Q3 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Hexcel · $365M total across 2 segments · Q3 2022

  • Composite Materials
    $294M
  • Engineered Products
    $71.2M

Forward guidance

Hexcel narrowed its 2022 financial guidance ranges and raising its EPS midpoint based on its strong execution year to date.

Tailwinds

  • Sales of $1.53 billion to $1.60 billion (previously $1.50 billion to $1.63 billion)
  • Adjusted diluted earnings per share of $1.12 to $1.24 (previously $1.00 to $1.24)
  • Free cash flow in the range of $100 million (previously greater than $145 million)
  • Accrual basis capital expenditures of approximately $75 million (unchanged)
  • Underlying effective tax rate is estimated to be 22% (previously 23%)

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+0.1%

Avg return

Earnings day

-0.5%

Avg return

5 days after

+3.6%

Avg return

30 days after

55%

38 / 69 earnings

Positive

+11.1%

Q3 2025

Best reaction

-11.6%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.6%+6.8%-1.1%
Q4 2025+5.5%+3.4%+15.5%
Q3 2025+11.1%+13.9%+13.8%
Q2 2025-1.2%-2.8%-0.8%
Q1 2025-4.3%-0.4%+3.1%
Q4 2024+3.2%-2.4%-8.5%
Q3 2024+2.7%-0.3%-6.6%
Q2 2024-7.6%-5.4%-7.9%
Q1 2024+3.0%+4.0%+15.5%
Q4 2023-8.9%-7.3%+2.4%
Q3 2023-7.6%-8.1%+3.7%
Q2 2023-6.3%-7.0%-4.3%
Q1 2023+6.2%+5.7%+3.9%
Q4 2022+9.0%+10.7%+16.5%
Q3 2022-2.8%-2.4%+6.0%
Q2 2022+1.4%+6.0%+7.0%
Q1 2022+1.2%-2.2%-0.8%
Q4 2021-6.2%-0.8%+8.4%
Q3 2021-4.4%-5.6%+1.3%
Q2 2021+1.8%-5.7%-1.0%
Q1 2021-0.2%-0.3%-9.8%
Q4 2020-6.9%-9.7%+17.7%
Q3 2020-4.0%-0.1%+41.0%
Q2 2020-9.0%-18.3%-13.8%
Q1 2020-11.6%-12.5%-5.0%
Q4 2019+0.6%+0.0%-6.4%
Q3 2019-0.8%-3.2%+4.4%
Q2 2019+4.4%+4.0%+2.0%
Q1 2019+0.3%+4.1%+7.4%
Q4 2018+7.4%+6.6%+16.5%
Q3 2018-4.0%-7.3%-5.8%
Q2 2018-2.4%-0.6%-1.4%
Q1 2018+3.5%+2.2%+9.1%
Q4 2017+2.1%+4.8%+3.7%
Q3 2017+4.9%+7.4%+1.0%
Q2 2017-4.6%-5.2%-3.5%
Q1 2017-2.3%-1.5%-5.1%
Q4 2016-0.3%-1.0%+6.4%
Q3 2016+3.6%+4.7%+14.1%
Q2 2016+6.5%+4.4%+7.3%
Q1 2016+0.7%
Q4 2015+8.2%
Q3 2015-7.6%
Q2 2015-1.4%
Q1 2015+0.2%
Q4 2014+4.8%
Q3 2014+1.6%
Q2 2014-3.0%
Q1 2014-3.3%
Q4 2013-7.8%
Q3 2013+1.3%
Q2 2013+3.6%
Q1 2013+9.1%
Q4 2012+0.3%
Q3 2012-1.2%
Q2 2012-7.2%
Q1 2012+5.1%
Q4 2008+3.5%
Q4 2011+3.5%
Q3 2011-1.3%
Q2 2011+0.4%
Q1 2010+8.1%
Q1 2011+1.9%
Q4 2010+2.4%
Q3 2009-2.3%
Q3 2010-2.3%
Q2 2010+4.1%
Q4 2009+4.1%
Q2 2009+4.1%

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