HEICO Corporation’s HEI first-quarter fiscal 2024 earnings per share (EPS) of 82 cents beat the Zacks Consensus Estimate of 73 cents by 12.3%. The bottom line also improved 22.4% from the prior-year quarter’s 67 cents.

Total Sales

The company’s net sales increased 44.4% year over year to $896.4 million in the reported quarter. Total sales also beat the Zacks Consensus Estimate of $875 million by 2.4%.

The year-over-year upside was driven by increased sales volume from both the Flight Support Group and Electric Technologies Group segments.

Heico Corporation Price, Consensus and EPS Surprise Heico Corporation Price, Consensus and EPS Surprise

Heico Corporation price-consensus-eps-surprise-chart | Heico Corporation Quote

Operational Update

HEICO’s cost of sales increased 45.7% year over year to $549.6 million in the quarter under review. The company’s selling, general and administrative expenses increased 45.6% to $166.6 million.

Interest expense of $38.6 million skyrocketed from $6.1 million in the prior-year quarter.

Segmental Performance

Flight Support Group: Net sales from this segment surged 66.6% year over year to $618.7 million. This rise was driven by strong organic growth of 12% and the impact from its fiscal 2023 acquisitions.

The segment’s operating income soared 62.8% year over year to $136.1 million. This increase was due to solid net sales growth.

Electronic Technologies Group: The segment’s net sales increased 12.1% to $285.9 million, primarily driven by benefits from its fiscal 2023 acquisitions and increased organic net sales of aerospace products.

The segment’s operating income fell 2.1% year over year to $55.3 million, primarily due to a less favorable product sales mix and an increase in new product research and development expenses.

Financial Details

As of Jan 31, 2024, HEI’s cash and cash equivalents totaled $196.3 million compared with $171 million as of Oct 31, 2023.

Cash flow provided by operating activities was $111.7 million during the three months ending Jan 31, 2024, implying a 45.6% rise from the prior-year period’s level.

HEICO reported long-term debt (net of current maturities) of $2.50 billion at the end of Jan 31, 2024, up from $2.46 billion as of Oct 31, 2023.



Zacks Rank

HEICO currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Curtiss-Wright Corporation CW reported fourth-quarter adjusted earnings per share (EPS) of $3.16, which surpassed the Zacks Consensus Estimate of $2.92 by 8.2%. The bottom line improved 8.2% from the year-ago quarter’s level of $2.92.

In the quarter under review, the company’s net sales of $785.8 million went up 3.7% year over year. Also, the top line surpassed the Zacks Consensus Estimate of $737 million by 6.6%.

Kratos Defense & Security Solutions, Inc. KTOS reported fourth-quarter 2023 adjusted earnings of 12 cents per share, up 50% from 8 cents reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of 8 cents by 50%.

Total revenues were $273.8 million, which surpassed the Zacks Consensus Estimate of $252 million by 8.6%. The figure also increased 9.8% from $249.3 million recorded in the year-ago quarter.

Teledyne Technologies Inc. TDY reported fourth-quarter 2023 adjusted earnings of $5.44 per share, which beat the Zacks Consensus Estimate of $5.06 by 7.5%. The bottom line also improved 10.1% from $4.94 recorded in the year-ago quarter.

Total sales were $1,425 million, which missed the Zacks Consensus Estimate of $1,445.6 million by 1.4%. The top line, however, grew 0.5% from $1,418.2 million reported in the year-ago quarter.

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