Hexcel Corporation HXL reported third-quarter 2021 adjusted earnings of 13 cents per share, which exceeded the Zacks Consensus Estimate of 8 cents by 62.5%. The bottom line also improved from a loss of 29 cents per share incurred in the year-ago quarter.In the quarter under review, the company posted GAAP earnings of 11 cents compared with the prior-year quarter’s figure of 12 cents.Total SalesNet sales totaled $333.8 million, which missed the Zacks Consensus Estimate of $353 million by 5.3%. However, the top line witnessed an improvement of 16.3% from the year-ago quarter’s $286.9 million.Hexcel Corporation Price, Consensus and EPS Surprise Hexcel Corporation price-consensus-eps-surprise-chart | Hexcel Corporation QuoteOperational UpdateHexcel's gross margin for the third quarter was 19.8% compared with 4.7% in the prior-year period, driven by a favorable sales mix oriented toward carbon fiber combined with the benefits of prior cost reduction actions that reduced the overhead cost base.Selling, general and administrative expenses rose 30.1%, whereas research and technology expenses for the third quarter of 2021 dropped 2.8% year over year.The company’s adjusted operating income amounted to $23.6 million in the quarter against an adjusted operating loss of $21.8 million incurred in the year-ago period.Segmental PerformanceCommercial Aerospace: Net sales increased 29.8% year over year to $167.2 million. Strengthening narrowbody sales boosted this unit’s top-line performance.Space and Defense: Net sales grew 1.5% year over year to $110.4 million. The improvement can be attributed to strength observed in F-35, CH-53K, civil helicopters in Europe and unmanned aerial vehicles in the United States.Industrial: Net sales increased 14% year over year to $56.2 million, primarily driven by strong growth observed in automotive and recreation markets.Financial DetailsAs of Sep 30, 2021, cash and cash equivalents were $105.8 million compared with $103.3 million as of Dec 31, 2020.Long-term debt totaled $876.4 million as of Sep 30, 2021, down from $925.5 million as of 2020-end.At the end of third-quarter 2021, cash generated from operating activities was $64.2 million compared with $157 million in the prior year.Hexcel’s adjusted free cash outflow at the end of third-quarter 2021 was $49.2 million compared with $109.2 million at the end of the prior-year period.2021 GuidanceThe company continues to withhold its financial guidance due to the market uncertainties arising from the global pandemic.Zacks RankHexcel currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Upcoming Q3 Defense ReleasesBoeing BA will release its results on Oct 27.General Dynamics GD will release its results on Oct 27.Northrop Grumman NOC will release its results on Oct 28. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report General Dynamics Corporation (GD): Free Stock Analysis Report Hexcel Corporation (HXL): Free Stock Analysis Report To read this article on Zacks.com click here.