By Shares of Hexcel, the provider of advanced lightweight composites technology, experienced a decline following an unexpected loss in the fourth quarter. At 11:19 a.m. ET, shares were down 6.9% to $66.74. Despite this recent setback, the stock has seen an overall increase of 24% in the past three months and 64% over the past 12 months.
Disappointing Fourth Quarter Results
Hexcel reported a net loss of $18.2 million, or 21 cents per share, for the latest quarter, compared to a profit of $37 million, or 43 cents per share, during the same period the previous year. Analysts polled by FactSet had predicted earnings per share of 50 cents. When accounting for one-time items, the company’s earnings per share amounted to 43 cents, falling short of FactSet’s projected 54 cents.
Decline in Industrial Sales
One of the contributing factors to Hexcel’s loss was a drop in industrial sales. Sales, however, did increase by 6.5% to $457.5 million. This figure fell below the analysts’ estimate of $474 million.
Increased Payout to Shareholders
In an effort to mitigate the impact of their disappointing quarterly results, Hexcel announced an increase in their shareholder payout. The payout has been raised from 12.5 cents to 15 cents per share. Annually, this represents a yield of 0.8% based on the company’s latest closing price of $71.65.
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