HEXCEL CORP (HXL)

EARNINGS RELEASE MONDAY- OCTOBER 21 (AMC)

Trade Assist May Not Be Available For All Jump Trades (See Trade Plan

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JUMP REPORT

Avg Daily Volume: 452,598    Market Cap: 6.48B
Sector: Industrial Goods    Short Interest: 2.63

EARNINGS EXPECTATIONS:  

     THIS QTR:   EPS:     .88/share     REV:  599.08/M
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     LAST QTR:  EPS:      .89/share     ACTUAL:   .94/share  (BEAT)
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     NEXT QTR:  EPS:     .88/share     REV: 610.30/M
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     FULL YR:     EPS:     3.54/share    REV: 2,430/M
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*These are the base metrics we will be watching against the actual release numbers
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BEAT/MISS RECORD:  63%  OF THE TIME THEY BEAT ESTIMATES

PRIOR ‘JUMP ZONE’ MOVES (LAST 3 QTRS %) 6.24, 4.49, 10.08

EXPECTED JUMP MOVE:  6-10%

Links To Latest News and Headlines

29 Oct, 2020 @ 11:32 by Yahoo! Finance

The two aerospace companies both rely heavily on demand for new passenger jets, but their recoveries from the pandemic slump are likely to look quite different.

Wall Street’s fall in the latest session driven by worries surrounding resurging COVID cases in the United States outweighs better-than-expected Q3 performance by most defense stocks

21 Oct, 2020 @ 14:29 by Yahoo! Finance

Hexcel Corporation’s (HXL) third-quarter revenues witness a 49.9% decline year over year, primarily due to the impacts caused by the pandemic.

20 Oct, 2020 @ 12:00 by Yahoo! Finance

NEW YORK, NY / ACCESSWIRE / October 20, 2020/ Hexcel Corp.

20 Oct, 2020 @ 05:31 by Yahoo! Finance

Shares of Hexcel Corp. plunged 7.8% in Monday’s extended trading session after the industrial material company reported dismal 3Q results. The company’s top and bottom line missed analysts’ expectations mainly due to a significant reduction in demand for its products amid the COVID-19 pandemic. (See HXL stock analysis on TipRanks).Hexcel’s (HXL) 3Q revenues dropped 49.9% to $286.9 million year-on-year and below the Street consensus of $361 million. The aerospace manufacturer reported an adjusted loss per share of $0.29 for the quarter, compared with the year-ago quarter’s adjusted EPS of $0.90. Analysts had expected EPS of $0.08.Hexcel reported a decline in revenues across all its market segments. Sales across its Commercial Aerospace, Industrial, and Space & Defense divisions fell 66.6%, 35.8% and 0.9%, respectively. The company noted that Boeing (BA) 737 MAX sales remain at a “very low level” adding that further production reductions announced at the end of July 2020 by Airbus and Boeing are leading to supply chain destocking.Following the results, Cowen & Co. analyst Gautam Khanna reiterated his Hold rating and the price target of $34 (6.5% downside potential). In a note to investors, Khanna wrote, “Severe commercial aerospace OE (original equipment) destocking drove a big Q3 sales/EPS miss. We expect HXL’s stock to de-rate and Street C21-22E (Calendar 2021-2022 Estimate) to drop as investors re-baseline OE build rate expectations.”Currently, the Street is also sidelined on the stock. The Hold analyst consensus is based on 8 Holds, 1 Buy, and 3 Sells. With shares down 50.4% year-to-date, the average price target of $37.33 implies a moderate upside potential of 2.7% to current levels.Related News: United Airlines Adds 8 New Routes To Boost Latin America Presence Halliburton 3Q Sales Miss The Street; Shares Decline AMC Spikes 14% As Movie Theatres To Reopen; Street Sees 70% Upside More recent articles from Smarter Analyst: * PPG Slips In After-Market As 3Q Sales Volume Drops * Tesla 3Q California Car Registrations Slip 13% – Report * Juniper Snaps Up 128 Technology For $450M To Bolster AI-Portfolio * AbbVie Submits US, EU Rinvoq Applications For Atopic Dermatitis

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ANALYSIS:   

StockJumpers trajectory analysis reveals a negative market reaction to the release news. We are expecting a beat on EPS but other factors like full year expectations may have the stock falling post release. (note: the stock has risen the last 3 qtrs post release)

We are biased SHORT on this event.

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OUR TRADE PLAN:

ENTRY:  SELL – end of day
STOP LOSS:   NA
INITIAL PROFIT TARGET:  6%
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TRADE ASSIST:  YES

POST RELEASE ACTION: 

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There is a significant amount of data behind the scenes involved in the analysis and trade plan tab above, that does not get put into the report. Too much information for traders often confuses things – so this is striped down to only what it needed to make the best possible decision(s) on trading the trajectory. 

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