LONDON, UK / ACCESSWIRE / October 24, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Hexcel Corp. (NYSE: HXL), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=HXL, following the Company's reporting of its third quarter fiscal 2017 operating results on October 18, 2017. The maker of lightweight composite materials exceeded earnings expectations and revised its fiscal 2017 guidance. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Earnings Reviewed

For the quarter ended September 30, 2017, Hexcel's sales totaled $491.5 million, 1.8% lower compared to Q3 2016 sales of $500.5 million. The Company's reported number fell short of analysts' estimates of $507.77 million.

During Q3 2017, Hexcel's gross margin was 27.6% compared to 27.1% in Q3 2016, with both periods reflecting strong operating performance. The Company's selling, general, and administrative (SG&A) expenses for the reported quarter were $34.7 million, lower than the prior year's comparable period of $35.1 million as the Company maintained tight cost control.

Hexcel's adjusted operating income in Q3 2017 was $89.1 million, or 18.1% of sales, compared to $89.1 million, or 17.8% of sales, in Q3 2016. The Company stated that the reported quarter was favorably impacted from exchange rates by about 40 basis points.

For Q3 2017, Hexcel reported net income of $69.7 million, or $0.76 per diluted share, compared to net income of $68.2 million, or $0.72 per diluted share, for Q3 2016. The Company's adjusted diluted EPS of $0.71 was 9.2% higher than the prior year's same quarter adjusted diluted EPS of $0.65. Hexcel's earnings topped Wall Street's estimates of $0.69 per share.

Hexcel's Segment Results

During Q3 2017, the Commercial Aerospace's sales of $352.6 million were 2.2% lower on a y-o-y basis. The sales decline in certain legacy widebody aircraft (i.e. A380, B777, and B747) partially offset the growth of the A350 and the new narrowbody aircraft. For the reported quarter, the segment's sales to "Other Commercial Aerospace", which include regional and business aircraft customers, declined approximately 6% on a y-o-y basis.

The Space & Defense division's sales of $82.7 million increased 1.5% on a y-o-y basis. Rotorcraft's sales comprised just over half of Space & Defense sales with strong military performance offset by weaker commercial rotorcraft sales.

For Q3 2017, the Industrial sales of $56.2 million declined 3.8% on a y-o-y basis. The Company noted that Wind energy sales (the largest submarket in Industrial) is experiencing a challenging transition year and was more than 25% down on a y-o-y basis for the reported quarter.

Cash and Other

Hexcel's free cash flow for the first nine months of 2017 was a source of $87 million versus $55 million in the year-ago comparable period. The Company's working capital generated cash of $5 million in the first nine months of 2017 compared to a $38 million use in the first nine months of 2016. The primary driver was an improvement in receivables through strong cash collections. Hexcel's cash used for capital expenditures totaled $221 million in the first nine months of 2017 compared to $232 million in the 2016 same period.

On a year to date basis, Hexcel utilized $122 million to repurchase shares of its common stock and has $271 million remaining under the authorized share repurchase program. Along with the earnings announcement, the Company's Board of Directors declared a quarterly dividend of $0.125 per share. The dividend will be payable to stockholders of record as of November 01, 2017, with a payment date of November 08, 2017.

Guidance

Hexcel's full-year 2017 sales guidance is now estimated to be just under $2.0 billion. The Company is estimating adjusted diluted earnings per share of $2.64 to $2.72 compared to the previous guidance in the range of $2.64 to $2.76.

Hexcel expects Commercial Aerospace's sales for FY17 to be slightly lower compared to 2016. Space & Defense sales are better than initially expected and are now forecasted to be up low-single digits compared to 2016.

Stock Performance

Hexcel's share price finished yesterday's trading session at $62.90, dropping 1.35%. A total volume of 1.08 million shares have exchanged hands, which was higher than the 3-month average volume of 558.03 thousand shares. The Company's stock price soared 20.52% in the last three months, 20.54% in the past six months, and 44.07% in the previous twelve months. Additionally, the stock rallied 22.28% since the start of the year. Shares of the Company have a PE ratio of 22.73 and have a dividend yield of 0.79%. The stock currently has a market cap of $5.67 billion.

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