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Q1 Earnings Commentary: Hexagon Composites Continues To Impress And Moves Further Ahead Of Competition

Hexagon Composites (OTC:HXGCF) reported Q1 earnings on Friday, May 9th. Hexagon reported record earnings, and as we can see from the table below, analyst consensus was soundly beaten.

Source: Analyst reports and Hexagon Composites earnings

The analyst beat was not so much on revenue and EPS (both positive and negative non-recurring items influenced EPS), but on EBITDA and EBIT margins. The margins were substantially better than consensus, and two analysts have already increased their price targets.

If analyst consensus was soundly beaten, then why did the stock trade down after earnings? I think the answer lies in appreciating that the stock is up approximately 350% in the last 12 months, and investors' desire to lock in profits should...

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