Here's Why This Boeing Supplier's Stock Soared Today
Shares in advanced composite materials company (NYSE: HXL) were up by 15% as of 11 a.m. today. The move comes after its third-quarter earnings presentation. While third-quarter numbers and near-term guidance weren't anything to write home about, the company's future definitely is.
They may well end up as a trivia question along the lines of: Which company reported flat year-over-year sales, told investors it would be at the bottom of its full-year sales guidance, and lowered its earnings guidance for the full year, but still saw its shares up by a mid-teens percentage on the day? You obviously know the answer, but the deeper question is, why?
It comes down to the fact that the aerospace supply chain appears to be easing in general, which means aircraft manufacturers and Boeing (both customers of Hexcel in their own right and via their suppliers) will find it easier to ramp up production.
Source Fool.com
